BNP Paribas enters exclusive talks to buy AXA Investment Managers for €5.4bn
French banking giant BNP Paribas has entered into exclusive negotiations to acquire AXA Investment Managers (AXA IM), AXA’s asset management arm, in a deal valued at around €5.4 billion.
BNP Paribas set to snap up AXA IM for €5.4 billion
AXA says the deal, subject to customary closing conditions and expected to be finalised by Q2 2025, includes €5.1 billion in cash proceeds and an additional €300 million consideration “from the sale of Select to AXA IM prior to the closing of the proposed transaction”.
Select (formerly named Architas) is an AXA company offering investment solutions including management of funds, investment management services, and advisory services to retail customers in France, Belgium, Hong Kong, and Indonesia.
Under the proposed transaction terms, AXA and BNP Paribas will also establish a “long-term strategic partnership”, through which the French banking group will provide investment management services to AXA.
AXA says the combination will “create a leading European asset manager, with total assets under management of €1.5 trillion”.
The company explains that the decision to exit the asset management business underscores its strategy “to simplify its business model and to focus on its core insurance activities”, specifically property and casualty, life and savings, and health.
The two companies are already well-acquainted, with BNP Paribas Cardif, the insurance subsidiary of BNP Paribas Group, announcing its acquisition of French life insurance firm Neuflize Vie back in May. AXA, which held a 40% stake, and Dutch investment bank ABN Amro were the parent companies involved in the transaction.
