(Reuters) – BNP Paribas said on Thursday it had entered into exclusive negotiations with AXA to acquire 100 percent of its AXA Investment Managers arm, with the French bank also announcing its intention to form a long-term partnership with the insurer to manage a large portion of its assets.
The largest bank in the Eurozone has specified that BNP Paribas Cardif, its insurance business, after having carried out the acquisition directly and in-house, could delegate to this platform the management of its insurance and savings assets up to 160 billion euros.
“With an impact of around 25bp on the CET1 ratio of the BNP Paribas Group and at the end of the merger process, the expected return on invested capital from the transaction, from the third year, would be greater than 18%,” BNP Paribas said in a press release, adding that the new entity thus formed would represent 1,500 billion euros of assets under management.
The agreed price for the acquisition and the establishment of the partnership is 5.1 billion euros, specifies the group, which plans to close the operation by summer 2025.
(Written by Elena Smirnova, edited by Augustin Turpin)
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