Business
BNP Paribas signs €5.1bn share purchase agreement for Axa IM
Global Banking & Finance Review®
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BNP Paribas has formally signed the previously announced €5.1bn ($5.3bn) share purchase agreement for Axa
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.
Asset management is the process of developing, operating, maintaining, and selling assets in a way that maximizes their value. It involves managing investments on behalf of clients to achieve specific financial goals.
A share purchase agreement is a legal document that outlines the terms and conditions under which shares of a company are bought and sold. It includes details such as the purchase price and the rights of the shareholders.
BNP Paribas is a multinational banking and financial services company headquartered in Paris, France. It is one of the largest banks in the world, providing a range of financial services including investment banking and asset management.
Axa Investment Managers is a global investment management firm that is part of the Axa Group. It offers a variety of investment solutions across asset classes to institutional and retail clients.
The common equity tier 1 ratio is a measure of a bank's financial strength, calculated by dividing its core equity capital by its total risk-weighted assets. It is a key indicator of a bank's capital adequacy.
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