BNP Paribas forms asset management giant
The consolidation of the asset management industry gains momentum with the planned sale of Axa Investment Managers (Axa IM) to BNP Paribas. The largest bank in the Eurozone aims to acquire the insurer's asset management division for 5.4 billion euros, thereby positioning itself as the number two in the European market, just behind Amundi. BNP Paribas announced it has entered „exclusive negotiations“ with Axa for the acquisition of the subsidiary.
With the acquisition by BNP Paribas Cardif, the bank's insurance division, Axa estimates that a new asset management giant will emerge with assets under management totaling 1.5 trillion euros. Currently, Axa IM manages 859 billion euros, BNP Paribas has around 576 billion euros in asset management, and BNP Paribas Cardif manages approximately 255 billion euros. For comparison, the European leader Amundi reported 2.16 trillion euros in assets under management as of the end of June, while the previous number two, Natixis Investment Managers, manages 1.23 trillion euros.
Axa focuses on core business
For BNP Paribas CEO Jean-Laurent Bonnafé, this is the largest acquisition since he took over in 2011. He has a well-stocked war chest, following the sale of the US subsidiary Bank of the West for 16.3 billion dollars in 2023. Axa, on the other hand, is addressing the long-standing question of what to do with its asset management subsidiary. In early July, it was rumored that Axa and BNP Paribas might be collaborating in the asset management sector. Axa IM had previously discussed a merger with Natixis Investment Managers, but neither company was willing to cede control.
Axa aims to simplify its business model and focus on its core insurance operations by withdrawing from asset management. In light of the accelerated consolidation in the asset management industry and increased competition in the sector, Axa CEO Thomas Buberl said the company had explored various options for the subsidiary. „By combining forces with BNP Paribas, Axa IM will become a global asset manager with a stronger international presence, a broader range of offerings, and a shared goal of leading in responsible investing.“
Jefferies analysts have pointed out a loss of diversification as a concern. But they also highlight that Axa, by itself, lacks the scale to effectively compete with the leading firms in asset management.
