BNP Paribas Group has confirmed it is in exclusive talks to acquire 100 per cent of AXA’s €850 billion investment management arm AXA Investment Managers (AXA IM).
In a statement, BNP Paribas said the agreed price for the acquisition and the setup of the partnership was €5.1 billion ($8.45 billion) at closing, with completion expected for mid-2025 once regulatory approvals have been obtained.
Separately, AXA said it would also receive a €300 million consideration from the sale of Select, a specialist investment multimanager under AXA IM.
Moreover, the two companies would enter into a long-term strategic partnership under which BNP Paribas would provide investment management services to AXA.
The proposed transaction would see the combined entities bolster total assets under management of some €1.5 trillion and would become a leading player in the sector.
“This project would position BNP Paribas as a leading European player in long-term asset management,” Jean-Laurent Bonnafé, BNP Paribas director and chief executive, said.
Bonnafé added that the company expects to benefit from AXA IM’s alternatives market position and track record in private assets, with the proposed transaction poised to drive further growth with both institutional and retail investors.
“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,” he said.
AXA chief executive Thomas Buberl labelled the group’s asset management unit as a “homegrown success story” for the business.
“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,” Buberl said.
“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.”
AXA IM clarified that, upon completion, the proposed transaction is expected to result in a reduction in underlying earnings of some €400 million on an annualised basis for the group and an estimated one-off net income gain of €2.2 billion.
The firm said it intended to offset the earnings dilution with a share buyback, currently estimated at €3.8 billion, to be launched immediately following the closing of the proposed acquisition.
The signing of the proposed transaction, expected by the end of the year, is subject to customary closing conditions, including the information and consultation of employee representative bodies.
