BNP Paribas announced on Thursday that it had entered into exclusive negotiations with AXA to acquire AXA Investment Managers for EUR 5.1 billion, a transaction that would expand the French banking group's asset management arm, BNP Paribas Asset Management.
The negotiations, which became public on 1 August 2024, are exclusive in nature, meaning AXA has agreed not to solicit or entertain competing bids during the discussion period. The deal structure also contemplates a long-term partnership in asset management between the two groups, so that AXA would continue to have its insurance and savings assets managed by the enlarged combined platform after the transaction closes.
AXA IM AND FINANCIAL TERMS
AXA IM's capabilities span fixed income, multi-asset, alternative investments and responsible investing strategies.
BNP Paribas said the deal would position it as a leading player in Europe in long-term asset management, and forecast a return on invested capital above 18% from the third year, with an impact of about 25 basis points on its CET1 ratio.
TIMELINE
The parties expect the transaction to complete in the first half of 2025, subject to regulatory approvals and the consultation processes required under French law with employee representative bodies.