BNP Paribas, the euro zone’s largest bank, is in exclusive talks with French insurer AXA to buy 100% of its AXA Investment Managers arm for 5.1 billion euros. This acquisition would significantly boost BNP’s asset management arm and allow them to achieve economies of scale and lower costs in the industry. For AXA, this strategic move will allow the insurer to focus on its core businesses such as life insurance, savings, property and casualty policies, and health insurance.
The combined entity would have total assets under management of about 1.5 trillion euros, making it one of the top European asset managers after leader Amundi. BNP expects the transaction to close in mid-2025 and anticipates a 25 basis points impact on its CET1 ratio. AXA will receive 5.1 billion euros in cash from BNP, with an additional 300 million euros for the acquisition of Select, a company that offers investment solutions.
AXA plans to use 3.8 billion euros from the proceeds for share buybacks and the remainder for “organic and inorganic growth”, according to AXA Deputy CEO Frederic de Courtois. As part of the deal, BNP will provide investment management services to AXA under a 15-year agreement. This acquisition marks a significant move in the financial industry and highlights the importance of strategic partnerships to achieve growth and expansion.
The deal between BNP Paribas and AXA showcases the ongoing trend in the financial industry where companies are looking to expand their asset management arms to achieve growth and lower costs. The acquisition of AXA Investment Managers by BNP will create a major player in the European asset management sector, with total assets under management of about 1.5 trillion euros.
BNP’s expectation of a 25 basis points impact on its CET1 ratio highlights the financial implications of the acquisition. With the transaction set to close in mid-2025, both BNP and AXA are looking to strengthen their positions in the market through strategic partnerships and acquisitions.
AXA’s decision to focus on its core businesses and use the proceeds from the sale of AXA Investment Managers for share buybacks and growth initiatives demonstrates the company’s commitment to driving value for its shareholders. The agreement between BNP and AXA also includes a long-term partnership where BNP will provide investment management services to AXA, further solidifying the relationship between the two firms.
Overall, the exclusive talks between BNP Paribas and AXA represent a significant development in the financial industry, with both companies poised to benefit from the acquisition of AXA Investment Managers. As the transaction moves forward, market observers will be closely watching the impact of the deal on both companies’ financial performance and market positioning.
