(A) Key Takeaways
BNP Paribas is in exclusive talks to acquire 100% of Axa SA’s asset management unit in consideration of €5.1 billion ($5.5 billion), which would create one of Europe’s largest money managers with roughly €1.5 trillion in assets overseen.
According to BNP Paribas’ press release published on 1 August 2024, the combined business would “become the European leading player in the management of long-term savings assets for insurers as well as pension funds with €850 billion of assets, leveraging powerful platforms of public and private assets”.
As per Axa SA’s press release published on the same date, Axa took a strategic decision to exit asset management business and enter into a long-term investment management partnership with BNP Paribas. In addition, anti-dilutive share buyback to be launched after the closing.
The deal would allow BNP Paribas to challenge no.1 in Europe Amundi SA; having said that, the US giants such as BlackRock Inc. or Vanguard Group Inc. remain multiple times larger than their European competitors.
(B) CEOs’ Messages
BNP Paribas’ chief executive officer, Mr. Jean-Laurent Bonnafe, said this major project, which would drive the company’s growth over the long-term would represent a powerful engine of growth for BNP Paribas Group.
Axa SA’s chief executive officer, Mr. Thomas Buberl, said over the past 25 years Axa has built an exceptional franchise anchored in investment expertise, a relentless client focus and a proven track record on sustainability and private assets. He further added that “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”.
(C) Overview of the Industry
Investment firms globally are searching new opportunities to consolidate. Many firms are considered too small to compete in this business where the recent shift toward passive products has fueled a price war. While Amundi SA has been acquiring rivals to increase scale, Goldman Sachs Group Inc. on the other hand acquired in 2022 the asset management arm of Dutch insurer NN Group NV.