BNP Paribas Enters Exclusive Negotiations to Buy 100% of AXA Investment Managers with $919 Billion AUM at $5.5 Billion Valuation Including Agreement for Long-Term Partnership to Manage Substantial Assets of AXA, Combined BNP Paribas & AXA Asset Management Business Will Have $1.6 Trillion AUM
2nd August 2024 | Hong Kong
BNP Paribas has entered into exclusive negotiations to buy 100% of AXA Investment Managers with $919 billion AUM (EUR 850 billion) at $5.5 billion (EUR 5.1 billion) valuation, including agreement for a long-term partnership to manage substantial assets of AXA. The combined BNP Paribas & AXA asset management business will have a total $1.6 trillion AUM. BNP Paribas (1/8/24): “The BNP Paribas Group announces today that it has entered into exclusive negotiations with AXA to acquire 100% of AXA Investment Managers (AXA IM), representing close to €850bn assets under management, together with an agreement for a long-term partnership to manage a large part of AXA’s assets. BNP Paribas Cardif, the insurance business of BNP Paribas, after having directly proceeded to the proposed transaction as principal, would have the opportunity to rely on this platform for the management of up to €160bn of its savings and insurance assets. With the combined contribution of BNP Paribas’ asset management platforms, the newly formed business, which total assets under management would amount to €1,500bn, would become a leading European player in the sector. Specifically, it would become the European leading player in the management of long-term savings assets for insurers as well as pension funds, with €850bn of assets, leveraging powerful platforms of public and private assets. The acquisition would also allow the combined businesses to benefit from AXA IM Alternatives’ leading market position and track record in private assets which will drive further growth with both institutional and retail investors. The agreed price for the acquisition and the set-up of the partnership is of €5.1bn at closing, expected mid-2025. With a CET1 impact of circa 25 bp for BNP Paribas, the expected return on invested capital of the transaction would be above 18% as soon as the 3rd year, following the end of the integration process. The signing of the proposed transaction, expected by the end of the year, is subject to the information process and consultation of the employees’ representative bodies. The closing of the transaction is expected by mid-2025 once regulatory approvals have been obtained.”
” BNP Paribas Enters Exclusive Negotiations to Buy 100% of AXA Investment Managers with $919 Billion AUM at $5.5 Billion Valuation Including Agreement for Long-Term Partnership to Manage Substantial Assets of AXA, Combined BNP Paribas & AXA Asset Management Business Will Have $1.6 Trillion AUM “
Jean-Laurent Bonnafé, Director & CEO, BNP Paribas: “This project would position BNP Paribas as a leading European player in long-term asset management. Benefiting from a critical size in public and alternative assets, BNP Paribas would serve its customer base of insurers, pension funds, banking networks and distributors more efficiently. The strategic partnership entered into with AXA, the cornerstone of this project, confirms the ability of both our groups to join forces. This major project, which would drive our growth over the long-term, would represent a powerful engine of growth for our Group.”
Thomas Buberl, CEO of AXA: “AXA Investment Managers has been a homegrown success story for the AXA Group. Over the past 25 years, we have built an exceptional franchise anchored in investment expertise, a relentless client focus and a proven track record on sustainability. Thanks to the quality of its teams, AXA IM is today a leading player, notably in Alternatives in Europe. 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. I would like to thank all AXA IM employees for their unwavering commitment, and their continued focus on delivering value for our clients.”
Renaud Dumora, Deputy COO, Investment & Protection Services, BNP Paribas: “The creation, within the Investment & Protection Services (IPS) division of the BNP Paribas Group, of a European leader in the management of long-term insurance and savings assets, would enable the IPS division to exceed EUR 2 trillion of assets entrusted by its clients. This operation would allow BNP Paribas Cardif to benefit from premium access to the services of an asset management expert on the asset classes required for insurance management. The combined expertise of the BNP Paribas Asset Management and AXA IM teams in public and private assets, as well as their leadership in sustainability, would be valuable assets to better meet future needs of clients.”
AXA: “The intention to exit the Asset Management business further emphasizes the Group’s strategy to simplify its business model and to focus on its core insurance activities. In particular, AXA’s Life & Savings business is well-positioned to grow, driven by the Group’s strong distribution and product design capabilities, and our customers will benefit from a broader array of asset classes, including continued access to a best-in-class Alternatives asset management platform. AXA retains full authority over product design, asset allocation and asset-liability management decisions.”
BNP Paribas Enters Exclusive Negotiations to Buy 100% of AXA Investment Managers with $919 Billion AUM at $5.5 Billion Valuation Including Agreement for Long-Term Partnership to Manage Substantial Assets of AXA, Combined BNP Paribas & AXA Asset Management Business Will Have $1.6 Trillion AUM
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