BNP Paribas studies buying Axa management company for 5.1 billion and creating a European giant in investment funds | Financial markets

by time news

2024-08-01 17:18:25

BNP Paribas logo.Sarah Meyssonnier (REUTERS)

The trickle of consolidation in the European asset management industry continues. BNP Paribas has confirmed that it is analyzing the acquisition of 100% of Axa Investment Managers (AxaIM), the asset manager of the French insurance company Axa. An operation that was worth 5.1 billion euros and which would imply the creation of a European giant with assets under management of 1.5 trillion euros. The two entities announced the opening of exclusive discussions to analyze the possible operation which would also imply the signing of a long-term agreement to manage a large part of Axa’s assets.

The acquisition, under the terms of the agreement, will allow BNP’s insurance division, BNP Paribas Cardif, to rely on the new platform to manage up to €160 billion of its savings and insurance assets.

The operation will imply an impact on the solvency of BNP Paribas (CET 1) of 25 basis points and the expected return on the invested capital of the transaction would be more than 18% in 2028, once the integration process is completed, as is explained by. both entities . The operation is expected to close in mid-2025 after receiving the relevant authorizations.

“This project will make BNP Paribas one of Europe’s leading players in long-term asset management. Thanks to its significant size in public and alternative assets, BNP Paribas will most effectively serve its client base of insurers, pension funds, banking networks and distributors. The strategic alliance with Axa, the cornerstone of this project, confirms the ability of our two groups to come together. This important project, which will stimulate our long-term growth, will be a powerful growth engine for our Group,” said Jean-Laurent Bonnafé, general director and CEO of BNP Paribas.

Thomas Buberl, CEO of AXA, believes that “by joining forces with BNP Paribas, AxaIM would become a global asset manager with a wider product offering and a common objective to continue to promote its leadership position in responsible investment”.

Asset managers are consolidating around the world, including in Europe, by buying asset managers owned by banks and insurers. In Spain, the French company Amundi, a firm that is part of the Crédit Agricole group, acquired the Sabadell management company four years ago for 430 million. An operation that allowed Amundi to become the fourth financial group by volume of assets in the Spanish market, managing 58 billion.

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