This merger undoubtedly foreshadows others in this sector under pressure.
BNP Paribas is taking a giant step forward in asset management. In exclusive negotiations since 1is August to buy the Axa subsidiary, the bank announced on Saturday that it had completed the acquisition. It pays 5.1 billion euros to get its hands on the 850 billion euros of assets under management of Axa Investment Managers and conclude a long-term agreement to provide investment management services to insurer.
This transaction, which should be finalized by mid-2025, places BNP Paribas among the European leaders, with 1.5 trillion euros of assets outstanding. However, it remains far behind the number one, the French Amundi, at the head of 2,200 billion. But this operation could herald others. Central banks are indeed calling for the creation of European banking giants. However, the mergers of certain professions, such as asset management, prove less complex than mergers on the scale of entire groups.
Union of forces of European giants
In addition, European managers are forced to join forces to take on American behemoths, such as BlackRock ($11.475 billion under management) and deal with the erosion of their margins. While their costs are increasing due, in particular, to regulations, management companies are seeing their clients fiercely negotiate commissions or turn away from them to invest at lower cost via ETFs, funds which replicate the performance of 'a basket of titles.
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BNP Paribas and Axa could join forces in asset management
The merger project between Natixis IM, asset manager of the BPCE bank, and Generali Investments, a subsidiary of the Italian insurer, seems for example to be off to a good start, unlike the discussions between Amundi and the insurer Allianz.
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