In addition to an agreement for a long-term cooperation to manage a significant portion of AXA‘s assets, the BNP Paribas Group has begun exclusive discussions with AXA to purchase 100% of AXA Investment Managers (AXA IM), representing close to €850bn ($930bn) in assets under management.
Following its immediate entry into the proposed deal as principal, BNP Paribas Cardif, the company’s insurance division, would be able to rely on this platform to handle up to €160bn in savings and insurance assets.
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The newly established company, whose total assets under management would reach €1,500bn, would emerge as a major player in the European asset management market due to the joint efforts of BNP Paribas‘ asset management platforms.
Through the merger, the combined companies would also be able to take advantage of AXA IM Alternatives’ dominant market position and proven track record in private assets, which will stimulate additional growth among institutional and retail investors.
The agreed-upon price for the acquisition and formation of the partnership is €5.1bn at closing.
With a CET1 impact of approximately 25 bp for BNP Paribas, the transaction’s estimated return on invested capital would be greater than 18% as early as the third year following the completion of the integration process.
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By GlobalDataThe planned transaction, which is likely to be signed by the end of the year, is subject to an information procedure and consultation with employee representatives. After regulatory permissions are secured, the acquisition is projected to close by mid-2025.
Jean-Laurent Bonnafé, director and CEO, BNP Paribas stated: “This project would position BNP Paribas as a leading European player in long-term asset management. 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. 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.”
Thomas Buberl, CEO of AXA added: “AXA Investment Managers has been a homegrown success story for the AXA Group. Over the past 25 years, we have built an exceptional franchise anchored in investment expertise, a relentless client focus and a proven track record on sustainability. Thanks to the quality of its teams, AXA IM is today a leading player, notably in Alternatives in Europe. 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. I would like to thank all AXA IM employees for their unwavering commitment, and their continued focus on delivering value for our clients.”
