BNP Paribas Group announced on Thursday that it has entered into exclusive negotiations to acquire AXA Investment Managers (AXA IM) from AXA.
The transaction, worth 5.1 billion euro, includes an acquisition of AXA IM’s 850 billion euro in assets under management and a long-term partnership agreement to manage a large portion of AXA’s assets, according to a BNP Paribas press release.
The acquisition, subject to regulatory approval and expected to be completed by mid-2025, would increase BNP Paribas’s total assets under management to 1,500 billion euros. The deal, which has been in the air for some time, underlines BNP Paribas’ ambition to become a leading European player in long-term savings management, particularly for insurers and pension funds.
Strategic expansion
The integration of AXA IM into BNP Paribas’ asset management division is expected to create a significant player in the European asset management industry.
Thomas Buberl, AXA chairman of the board, commented: “AXA IM is a leading player, especially in Alternatives in Europe. By partnering with BNP Paribas, AXA IM would become a global asset manager with a broader product offering and a common goal to further strengthen their leading position in responsible investing.”
For BNP Paribas, this acquisition is a strategic move to strengthen its asset management capabilities, particularly in alternative investments, which are becoming increasingly attractive to both institutional and retail investors. The combined company will benefit from AXA IM’s strong market position and track record in private assets.
Sandro Pierri, ceo of BNP Paribas Asset Management, commented on the potential benefits of the deal in a LinkedIn post: “This proposed acquisition would allow us to accelerate development in key strategic growth areas. This is an exciting time for our business, but until completion we remain focused on delivering the investment performance and service quality that our clients expect from us.”
Financial implications
The deal, expected to have an impact of about 25 basis points on BNP Paribas’ Common Equity Tier 1 (CET1), targets a return on invested capital of more than 18 per cent by the third year after integration. BNP Paribas Cardif, the insurance arm of BNP Paribas, will rely on the newly acquired platform to manage up to €160 billion of savings and insurance assets.
The signing of the proposed transaction is expected by the end of the year.