Societe Generale enters into exclusive negotiation with Amundi with a view to disposing of the asset management activities op...
07 Abril 2021 - 12:00AM
Societe Generale enters into exclusive negotiation with Amundi with
a view to disposing of the asset management activities operated by
Lyxor
SOCIETE GENERALE ENTERS INTO EXCLUSIVE NEGOTIATION WITH
AMUNDI WITH A VIEW TO DISPOSING OF THE ASSET MANAGEMENT ACTIVITIES
OPERATED BY LYXOR
Paris, 7 April 2021
Societe Generale’s Board of Directors
approved, during a meeting on 6 April 2021, the entry into
exclusive negotiation with Amundi with a view to disposing of the
asset management activities operated by Lyxor.
Lyxor is an entity which includes the Group's
asset management activities and operates in particular through
Lyxor Asset Management, a wholly owned subsidiary of Societe
Generale.
Created in 1998, Lyxor has played a pioneering
role in specialised asset management and has notably reached
leadership positions in passive asset management. Lyxor’s assets
under management represent approximately EUR 140 billion at the end
of December 2020 of which EUR 124 billion are in the scope of the
envisaged transaction1.
This disposal project would cover Lyxor's
passive (ETFs) and active (including alternative) management
activities for institutional clients in France and abroad2. The
scope of the transaction would include the sales and support
functions dedicated to these activities.
This agreement is in line with Societe
Generale's strategy with regards to savings, which is to operate in
open architecture and to propose to its clients investment and
asset management solutions through partnerships with external asset
managers.
In this context, Societe Generale would announce
a project to create a "Wealth & Investment Solutions"
department within its private bank. This department would serve as
a centre of expertise to structure savings, asset management and
investment solutions for the Group's private banking and retail
banking networks, as well as structured asset management solutions
for global markets clients. It would include Lyxor's teams,
which would not be part of the disposal project.
The partnership agreements with Amundi for the
provision of savings and investment solutions for Societe
Generale's networks are maintained. Societe Generale will also
continue to support Amundi through its comprehensive and flexible
range of market solutions and securities services.
This transaction, which is expected to be
finalized by February 2022 at the latest, would be carried out at a
price of EUR 825 million and would have an estimated positive
impact of approximately 18 basis points on the Group's CET1 ratio
when completed. The capital gain from the disposal, net of tax,
would be recorded upon completion of the transaction for around EUR
430 million.
This transaction would successfully conclude the
refocusing programme launched by Societe Generale in 2018. Carried
out under very good conditions, its execution will have simplified
the Group's organisation and optimised its capital allocation by
focusing its business model on core activities, working in synergy
and benefiting from critical size, with a positive effect of this
program on the Group's capital ratio in line with the target of 80
to 90 basis points.
The two institutions will work together to
ensure the smooth integration of Lyxor within Amundi, both in terms
of services provided to clients and in relations with the employees
involved in this project.
This project will be submitted to the relevant
employee representative bodies within Societe Generale Group, and
then to the competent regulatory authorities for approval.
Frédéric Oudéa, Chief Executive Officer of
Societe Generale, comments: « This transaction with Amundi,
Europe's leading asset manager, which Societe Generale helped to
create, will enable Lyxor's teams to play an active role in
building the undisputed leader in passive management in Europe in a
consolidating market. It is fully in line with Societe Generale's
strategy in terms of savings products, which is to operate in open
architecture and team up with the best asset management experts to
build the most suitable offers for our clients. Societe Generale
and Amundi will remain key partners, each participating mutually in
the value proposition implemented for their clients. In addition,
this transaction would successfully close the refocusing program
launched in 2018 by Societe Generale. »
1 Certain activities from Lyxor are excluded
from the scope of the transaction and retained by Societe Generale:
(i) structured asset management solutions intended for Societe
Generale's global markets clients and (ii) asset management
activities dedicated to savings solutions and carried out for
Societe Generale (Branch networks and Private Banking) such as
structuring of savings solutions, funds selection and the
supervision of the Group's asset management companies.2 with the
exception of Lyxor AM Japan Co. Ltd in Japan
Note : Upon completion of this
transaction Societe Generale Private Banking, one of the bank's
core businesses, would become a fully-fledged Business Unit,
renamed "PRIV", integrated within the RBDF pillar and supervised by
Sébastien Proto. It would be composed of four main business lines:
Private Banking France, Private Banking Europe (Luxembourg,
Switzerland, Monaco), Kleinwort Hambros and the Wealth and
Investment Solutions department.
Press contacts: Jean-Baptiste
Froville_+33 1 58 98 68 00_
jean-baptiste.froville@socgen.com Corentin
Henry_+33 1 58 98 01 75_
corentin.henry@socgen.com
- PR Societe Generale Entry into exclusive negotiation with
Amundi with a view to disposing of the asset management activities
of Lyxor
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