Societe Generale (SocGen) has announced a plan to form a global equities joint venture (JV) with AllianceBernstein, a US-based investment management and research company.
The proposed JV will combine both firm’s cash equities and equity research activities.
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It will provide stakeholders in American, European and Asia Pacific equity markets with investment knowhow as well as liquidity access and global trading technology.
The JV will also cater to both the firms’ clients, including corporate and financial institution issuers along with institutional investors.
SocGen plans to own a 51% interest in the JV, with an option buy the remaining share after five years, as part of the deal.
The merged entity will operate from London under the name of Bernstein.
Following the completion of the deal, Bernstein Research Services CEO Robert van Brugge will become CEO of the new JV for the first five years.
SocGen head of cash equities Stephane Loiseau will become deputy CEO of the JV.
Boards of directors of both the companies have granted approval for the planned merger.
Subject to workers council consultation a swell as approval of regulators and customary closing conditions, the deal is anticipated to close by the end of next year.
Societe Generale head of global banking and investor solutions Slawomir Krupa said: “This partnership with one of the most recognised firms in research and cash equities, combined with our global leadership in Equity Derivatives, would create an undisputed leader across the equity business for the benefit of our issuer and investor clients.”
In December last year, SocGen made an announcement that it had completed the sale of its fund management business Lyxor to Amundi.
