BNP Paribas has entered into a definitive agreement to acquire 100% of AXA Investment Managers – representing around €850 million in assets under management – for just over €5 billion.
The deal is set to include an agreement for BNP Paribas’ long term management of a large part of AXA’s assets. It is expected to be signed at the end of 2024 and close in mid-2025, pending relevant regulatory approvals.
The merger will create a mega-manager and leading player in the European sphere with roughly €1.5 trillion in assets under management.
Specifically, the new entity would be a leading player in long term savings assets for insurers and pension funds, BNP Paribas said in its Thursday statement.
“Benefiting from a critical size in public and alternative assets, BNP Paribas would serve its customer base of insurers, pension funds, banking networks and distributors more efficiently,” said Jean-Laurent Bonnafé, director and chief executive of BNP Paribas.
“The strategic partnership entered into with AXA, the cornerstone of this project, confirms the ability of both our groups to join forces. This major project, which would drive our growth over the long-term, would represent a powerful engine of growth for our Group.”
The joint venture is set to play into a much wider theme of consolidation seen across the street in recent years as many firms look to grow inorganically or cope with rising costs via the M&A route.
“Thanks to the quality of its teams, AXA IM is today a leading player, notably in Alternatives in Europe,” said Thomas Buberl, chief executive of AXA.
“By joining forces with BNP Paribas, AXA IM would become a global asset manager with a wider product offering and a mutual objective to further their leading position in responsible investing.”
Consolidation
Most recently we saw ABN AMRO confirm it was set to acquire German private bank, Hauck Aufhäuser Lampe (HAL) from Fosun International in May. The deal is valued at €627 million and is aimed at scaling the firm’s German activities.
In the same month, Amundi and Groupama confirmed they were teaming up to boost trading. The strategic partnership has seen Groupama AM combine its team of traders with Amundi Intermediation to help achieve its ambitions.
The years and months prior have been littered with announcements from all corners of the market announcing joint ventures or new combinations. In April, Tradeweb Markets moved to acquire Institutional Cash Distributors (ICD) for $785 million having entered into a definitive agreement.
In the same month, Kepler Cheuvreux subsidiary Ellipsis Asset Management announced it was set to expand its capabilities in the convertible bond segment through the acquisition of Rothschild & Co’s business.
Panmure Gordon and Liberum confirmed they were set to merge in January to create the UK’s largest independent investment bank, with ex-Barclays executive Rich Ricci stepping into the chief executive role of the combined entity.
Also in January, Impax Asset Management entered into an agreement to acquire the corporate credit assets from fixed income manager Absalon Corporate Credit, part of Formuepleje Group.
Looking further afield to 2023, several major deals were announced in a quick flurry on consolidation at the start of the year.
Among the headliners was news that financial services giant State Street was set to acquire outsourced trading firm CF Global, Deutsche Börse entering into a binding agreement to acquire SimCorp in an all-cash public takeover for $4.3 billion, and Deutsche Bank agreeing to acquire institutional broker Numis in a £410 million deal.