Societe Generale, the French bank, has entered exclusive talks with Amundi to strike a deal for its asset management business — a cash deal set to be worth €825m.
The deal will see Lyxor offload its passive and active management capabilities for institutional clients, including its exchange traded funds business and the sales and support functions associated with these activities.
However, Societe Generale will retain some activities, such as structured asset management solutions for its global markets clients and those dedicated to saving solutions carried out for its branch networks and private banking business.
Societe Generale plans to create a wealth and investment Solutions business within its private bank, which will be staffed with Lyxor teams not included in the deal with Amundi.
The deal, expected to complete by February 2022 at the latest, will boost Amundi’s position in the European ETF market, raising assets to €142bn and giving it a 14% share of the booming market.
It will be the final acquisition secured by Yves Perrier, the chief executive of Amundi, who steps down from the role in May to make way for Valérie Baudson.
Perrier was instrumental in the creation of Amundi after French banks Crédit Agricole and Société Générale merged their asset management businesses in 2010. He has secured a reputation as one of Europe’s most successful dealmakers during his decade in the top job.
Perrier said: “The acquisition of Lyxor will accelerate the development of Amundi, as it will reinforce our expertise, namely in ETF and alternative asset management, and allows us to welcome highly recognized teams of people.”
He added: “Finally, by creating in France the European leader in passive asset management, it will contribute to the post-Brexit positioning of the Paris financial centre”.
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