The BNP Paribas Group has entered into negotiations with French multinational insurance company AXA to acquire 100 per cent of AXA Investment Managers, representing close to €850 billion assets under management (AUM).
In addition, the group is working on an agreement for a long-term partnership to manage a large part of AXA’s assets.
The agreed price for the acquisition and the set-up of the partnership is valued at €5.1 billion, and is expected to complete mid-2025.
After having directly proceeded to the proposed transaction as principal, BNP Paribas Cardif, the insurance business of BNP Paribas, would have the opportunity to rely on this platform for the management of up to €160 billion of its savings and insurance assets.
With the combined contribution of BNP Paribas’s asset management platforms, the newly formed business — with a total AUM of €1,500 billion — would become a “leading European player” in the sector, the firm says.
For the BNP Paribas Group, the acquisition would allow the combined businesses to benefit from AXA IM Alternatives’ market position and track record in private assets, which “would drive further growth with both institutional and retail investors”.
Commenting on the news, Jean-Laurent Bonnafé, director and CEO at BNP Paribas, says: “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.”
AXA CEO Thomas Buberl adds: “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.”
The creation, within the Investment and 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 €2 trillion of assets entrusted by its clients, according to Renaud Dumora, deputy chief operating officer, Investment and Protection Services, BNP Paribas.
He continues: “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.”
