As Italy enjoys a post-lockdown economic recovery, it is also going through a phase of atypical political stability. Nomura believes that conditions are ripe for a significant increase in Italian merger and acquisition (M&A) activity this year. It expects financial sponsors, some of its most important clients, to make a meaningful contribution to such growth.
The Japanese bank has more skin in this national game than it once did, as it grows its country presence. Over the past five years, Italy’s percentage contribution to Nomura’s investment banking revenues has risen from “low single-digits” to “mid-teens”, it says. That is partly accounted for by its growing share of the Italian M&A market.
