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BNP Paribas SA has announced plans to acquire AXA Investment Managers, a subsidiary of French insurer AXA SA, for €5.1 billion ($5.5 billion). This strategic acquisition aims to establish a combined platform with €1.5 trillion in assets under management, solidifying BNP Paribas's position in the European asset management market.

BNP Paribas to acquire AXA Investment Managers : Exclusive Negotiations Underway

The Paris-based multinational revealed late on Thursday that it has entered into exclusive negotiations with AXA SA to acquire AXA Investment Managers. This subsidiary currently oversees nearly €850 billion in assets and maintains a long-term partnership to manage AXA's assets, a relationship that will continue post-acquisition.

Legal Advisors on the Deal

Sullivan & Cromwell LLP is advising AXA on the deal, with a team led by partners William D. Torchiana, Olivier de Vilmorin, Nicolas de Boynes, Ken Li, and Nicolas Karmin. Counsel information for BNP Paribas was not immediately available.

Additional Transactions and Strategic Goals

As part of the transaction, AXA will sell its fund services provider, Select, to AXA Investment Managers for €300 million before the BNP Paribas acquisition closes. This move aligns with AXA's strategy to simplify its business model and concentrate on core insurance activities.

BNP Paribas plans to integrate AXA Investment Managers with its own platform, creating a powerhouse with €1.5 trillion in assets under management. This merger aims to enhance BNP Paribas’s service offerings to insurers, pension funds, banking networks, and distributors, making it a leading player in long-term asset management across Europe.

BNP Paribas to acquire AXA Investment Managers : Leadership Perspectives

Jean-Laurent Bonnafé, CEO and director of BNP Paribas, stated, "This project would position BNP Paribas as a leading European player in long-term asset management." He emphasized that the bank would be better equipped to serve its diverse customer base more efficiently post-acquisition.

Thomas Buberl, CEO of AXA, highlighted the benefits of the sale, saying, "By joining forces with BNP Paribas, AXA Investment Managers would become a global asset manager with a wider product offering and a mutual objective to further their leading position in responsible investing."

Future Plans and Financial Impact

AXA plans to use part of the proceeds from the sale to launch a share buyback program worth approximately €3.8 billion after the deal's closure. The companies have noted that the proposed acquisition requires signing a share purchase agreement and obtaining regulatory approvals, along with consulting employees' representative bodies. The transaction is expected to finalize by mid-2025.

Conclusion

The acquisition of AXA Investment Managers by BNP Paribas represents a significant shift in the European asset management landscape. With the completion of this deal, BNP Paribas is poised to become a dominant force in managing insurance and pension fund assets, underscoring its commitment to long-term growth and market leadership.