Exclusive talks: BNP acquiring AXA IM at $5.5B

Fri 08/02/2024

by Ellie LeTu

Source: WSJ

• BNP Paribas

  • Major French international bank.

  • Has a spare $8.7B to spend after selling its US arm BancWest last year.

• AXA IM

  • AXA IM is an investment management is under AXA - a European insurance.

• Deal

  • BNP proposes to acquire AXA IM for $5.5B through its Cardif insurance business.

  • The acquisition will merge AXA IM with BNP Asset Management.

  • The transaction is expected to be signed by the end of this year.

  • The deal is predicted to close by mid-2025.

• Synergies - BNP

  • BNP becomes a European asset management giant with $1.6T AUM.

  • Expecting 18% ROI after 3 years of integration.

• Synergies - AXA IM

  • Exiting asset management, focus on core business of insurance.

  • Buying back shares to reduce earnings dilution.

  • Expanding to written premiums- acquiring Gruppo Nobis.