BNP Paribas has entered exclusive talks with French insurance company AXA to acquire 100% of AXA Investment Managers (AXA IM), which has nearly €850bn assets under management.
Through the exclusive talks, BNP Paribas also aims to establish a long-term partnership to manage the majority of the French insurer’s assets.
BNP Paribas said that the price for the acquisition and the set-up of the partnership would be €5.1bn.
The two parties are expected to sign an agreement for the proposed transaction by the end of this year, subject to the information process and consultation with employees’ representatives.
The transaction is expected to close in mid-2025 after receiving regulatory approvals.
BNP Paribas investment and protection services deputy chief operating officer Renaud Dumora said: “The creation, within the Investment & Protection Services (IPS) division of the BNP Paribas Group, of a European leader in the management of long-term insurance and savings assets, would enable the IPS division to exceed €2tr of assets entrusted by its clients.
“This operation would allow BNP Paribas Cardif to benefit from premium access to the services of an asset management expert on the asset classes required for insurance management.
“The combined expertise of the BNP Paribas Asset Management and AXA IM teams in public and private assets, as well as their leadership in sustainability, would be valuable assets to better meet future needs of clients.”
BNP Paribas insurance business BNP Paribas Cardif has directly proceeded to the proposed transaction as principal.
The insurance company would leverage AXA’s platform to manage up to €160bn of its savings and insurance assets.
The transaction combines BNP Paribas’ asset management platforms, with the newly formed business, which has total assets under management would amount to €1,500bn.
BNP Paribas director and CEO Jean-Laurent Bonnafé said: “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.”
The combined company would become a top European player in the management of long-term savings assets for insurers along with pension funds, using powerful platforms.
The acquisition allows the combined businesses to benefit from AXA IM Alternatives’ leading market position and track record in private assets.
It is expected to provide a return on invested capital of more than 18%, as soon as the third year, following the end of the integration process, said BNP Paribas.
AXA CEO Thomas Buberl said: “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.
“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.”
