EU banking M&A deals surge to post-2008 high

Good morning and welcome back. In today’s newsletter:

EU cross-border banking M&A deals soar to post-2008 high
Russia’s Wagner Group recruits vulnerable Europeans for sabotage attacks
European Commission tones down its criticism of Hungary’s Viktor Orbán
Niger’s 1,000-tonne uranium stash caught in the crosshairs of Isis

The value of cross-border mergers between EU banks has soared to its highest level since the 2008 financial crisis, rising to €17bn last year, compared with €3.4bn in 2024, according to data provided to the FT by Dealogic.

What to know: The increase was propelled by multibillion-euro mergers including Santander’s €7bn sale of much of its Polish operations to Erste and BPCE’s €6.4bn acquisition of Portugal’s Novo Banco.

Column chart of EU bank consolidation (€bn) showing European cross-border bank deals rise to highest since 2008 crisis

Behind the jump: The rise in EU banking mergers is part of a global trend, with international deals more than doubling last year to $190bn, according to a recent report by consultants McKinsey. More deals will be on the way this year and beyond, analysts say. A senior executive at a large lender, however, says significant barriers to cross-border consolidation remain. Here’s the full story.

Here’s what else we’re keeping tabs on today:

Economic data: The EU reports on December industrial production. Switzerland releases GDP figures.
Financial markets: The US marks Presidents’ Day. Argentina and Brazil close until tomorrow for Carnival. For the lunar new year, South Korea’s markets are shut for three days, China closes for the rest of the week and Hong Kong trades for half a day before closing until Friday.

Five more top stories

1. Exclusive: Economically vulnerable Europeans are being recruited as “disposable” agents by operatives linked to Russia’s Wagner Group to carry out Kremlin-organised sabotage attacks in Europe, western intelligence officials say.

2. Senior German defence officials have pledged to channel more money into innovation and start-ups amid criticism that the country’s vast military budget is being used for conventional weapons such as tanks rather than unmanned weapons powered by AI.

3. Exclusive: The European Commission is toning down its criticism of Hungary’s Viktor Orbán and might even disburse up to €2.4bn in fresh EU funds to his government ahead of elections that threaten to unseat the bloc’s longest-serving prime minister.

4. UK cuts to overseas aid are set to outstrip those made by the Trump administration in the US, as Sir Keir Starmer’s government wrestles with funding pressures. Read our report on the analysis by a Washington think-tank.

UK-EU reset: Britain will struggle to deliver on its pledge to cut red tape for food and drink exports to the EU because of poor preparation and staff shortages, the head of the UK’s food industry lobby has warned.
Online safety: Starmer has warned technology companies on illegal content in the UK, as he moved to tighten laws after a deepfake scandal involving xAI’s Grok chatbot.

5. Exclusive: The founders of Istanbul-based food delivery start-up Getir are suing Abu Dhabi’s Mubadala Investment Company for at least $700mn over claims the fund did not hand over promised assets when the company was restructured.

News in-depth

Montage showing yellowcake and the flags of Niger and Isis — © FT montage/Corbis/Getty Images

Niger wants to sell 1,000 tonnes of uranium seized from France but is struggling to find buyers. The fate of the yellowcake stash estimated to be worth $240mn remains uncertain as it lies stranded at an air base that was recently attacked by Isis militants.

We’re also reading . . .

Triumph by default?: Mercurial shifts in US foreign policy under Trump are giving China the upper hand in the geopolitical game, writes Eswar Prasad.
Student loans: The debate over university funding is a good example of the intractable challenges facing the UK government, writes Martin Wolf.
AI at work: Are Anthropic’s customisable tools that automate knowledge work game-changing?
Intermittent fasting: The popular weight-loss method is not more effective than standard dieting, scientists say.

Chart of the day

US offshore wind companies are racing to bring projects online that can withstand Trump’s efforts to cripple the multibillion-dollar industry. The sector has engaged in negotiations and lobbying, used legal action and is working with state leaders on measures to ensure projects can access funding.

Line chart of US offshore wind additions (gigawatts) showing The US offshore wind pipeline has frozen under Trump

Take a break from the news . . .

There may be no finer place to see photography than Rotterdam’s Nederlands Fotomuseum, says Edwin Heathcote. On a visit to one of the world’s largest national collections, which has its home in a former coffee warehouse, he explains why.