AXA plans to sell its asset management division to BNP Paribas, potentially creating one of the largest European asset managers.
The deal would see BNP Paribas pay €5.4 billion, creating an asset manager with total assets under management of €1.5 trillion.
The two firms would also enter into a strategic partnership, with BNP Paribas providing investment management services to AXA and AXA retaining authority over product design, asset allocation and asset liability management decisions.
The move will give BNP Paribas additional scale in a consolidating industry, while AXA will be able to focus in on its core insurance business.
Thomas Buberl, CEO at AXA, said: “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 and private assets.
“Thanks to the quality of its teams, AXA IM is today a leading player, notably in Alternatives. In the context of a rapidly consolidating and highly competitive asset management industry, the Group has considered different options to support the future development of AXA IM and to best align with the strategic goals of AXA to further simplify its business profile and grow its insurance businesses.
“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. This long-term partnership would provide AXA and its customers with continued access to a wide range of best-in-class investment solutions that would further strengthen our strategic ambitions in Life & Savings.”
Jean-Laurent Bonnafé, CEO at BNP Paribas, said: “In line with the model developed by AXA IM, BNP Paribas will remain deeply committed to deploying this new enlarged long-term savings management platform to serve insurers, pension funds as well as bank and distribution networks.”
