Posted By Global Banking and Finance Review
Posted on December 23, 2024
BNP Paribas has formally signed the previously announced €5.1bn ($5.3bn) share purchase agreement for Axa Investment Managers.
Axa and BNP Paribas Cardif entered into exclusive negotiations in August to offload Axa's asset management division.
The signing of the share purchase agreement follows the completion of the information-consultation procedure on strategic issues with the relevant employee representative bodies of both Axa and BNP Paribas groups.
“This signing marks an important step in the acquisition process of Axa IM and our long-term partnership with Axa," commented Renaud Dumora, chairman of BNP Paribas Cardif and deputy COO of BNP Paribas.
As previously reported, the agreed price for the acquisition and the long-term partnership is €5.1bn.
Axa Investment Managers has approximately €850mn of assets under management. Combination with BNP Paribas’ existing asset management unit would create one of the leading European asset managers, with €1.5trn of assets under management.
The deal is expected to close in mid-2025, with an anticipated impact on BNP Paribas Group's common equity tier 1 ratio of 25 basis points, subject to agreements with the relevant authorities.
Commenting on the exclusive talks back in August, Axa CEO Thomas Buberl said the company would offset the resulting earnings dilution with a share buy-back.
As noted in The Insurer's Analysis last month, Europe’s asset management industry is expected to enter a period of fresh consolidation, offering insurers a chance to free up capital and simplify their business models.
