Dutch M&A Trends in the Financial Services sector

Despite geopolitical tensions, ongoing uncertainty around economic growth, and regulatory change, global deal value in the financial sector increased by 31% in 2025. The return of large transactions underscores that executives are once again using M&A to strengthen their long-term strategic position - even in an environment where uncertainty remains a structural factor. 

Private credit as a catalyst for sector convergence

One of the most defining developments highlighted in the M&A Outlook is the rapid growth of private credit. This capital flow not only affects transaction financing, but also strategic decision-making across the sector. PwC Financial Services Deals Leader Wilbert van den Heuvel: ‘Private credit providers are predominantly based in London and New York. Dutch pension funds and insurers are showing interest due to the higher returns, but remain cautious given risk profile and transparency. As a result, they allocate capital selectively.’

Valuations reshape the banking M&A landscape 

According to Van den Heuvel, the dynamics behind M&A in the Dutch banking sector have fundamentally changed due to the sharp increase in bank valuations. ‘Prior to 2025, acquisitions often took place below book value, with ‘badwill’ perceived as a potential  driver of consolidation - something regulators also pointed to. In 2025, this picture reversed: valuations rose significantly, meaning transactions now more often generate goodwill. This changes the economic logic of M&A. It makes boards more cautious, while at the same time creating opportunities through capital market transactions.’ 

‘Higher valuations also make it politically and economically more attractive for governments to divest remaining stakes in financial institutions - particularly at a time when public finances are under pressure, for example due to the need to substantially increase defence spending,’ Van den Heuvel adds. ‘In December 2025, for instance, the Belgian federal government approved the sale of a 20% stake in Belfius Bank to reduce public debt and potentially fund defense spending.’

Growth opportunities for insurers

While consolidation in mature insurance markets such as the US and the UK is levelling off, the Dutch market presents a different picture. Van den Heuvel explains: ‘Consolidation continued, particularly in life insurance, including the further aggregation of run-off portfolios by a limited number of large players operating specialised platforms. At the same time, new growth opportunities are emerging through pension buy-outs. As a result of pension system reform, smaller pension funds are transferring their liabilities to larger parties. This is leading to competitive transactions in which scale, operational strength, and strategic positioning are decisive.’ 

Wealth management remains a key focus area 

Wealth management also remains a key focus area for M&A in the Netherlands. Van den Heuvel: ‘The market is fragmented and characterised by attractive, stable fee-based revenues. Banks are expanding their private wealth activities through targeted acquisitions, while private equity is becoming increasingly active with platform and roll-up strategies among independent asset managers. This development will keep M&A activity in wealth management at a solid level in 2026.’ 

Technology as a decisive factor 

AI and high-tech being widely regarded as global game changers, was already evident from PwC’s CEO Survey. ‘Although technology is rarely an objective in itself, it is becoming an increasingly important factor in determining who can achieve scale and who falls behind,’ says Van den Heuvel. 

‘Players that deploy technology effectively can significantly reduce costs and translate those advantages into more competitive pricing, enabling them to increase market share in saturated markets. This dynamic is particularly visible in transparent and highly competitive markets such as insurance, payments, and fintech.’

Looking ahead to 2026, Van den Heuvel points to the risk of rising interest rates, particularly at the long end of the yield curve. ‘In addition, persistently high valuations are putting pressure on transaction volumes and encouraging companies to look beyond their home markets more frequently. At the same time, structural themes such as bank consolidation, pension buy-outs, and pricing pressure in insurance will continue to shape the market. In this environment, timing, discipline, and scenario-based thinking are becoming increasingly important in realising value through M&A.’