Strategic Acquisition by BNP Paribas Cardif Unveils New Horizons
BNP Paribas Cardif Completes Acquisition of AXA Investment Managers
BNP Paribas Cardif has successfully completed a significant acquisition, marking a pivotal moment in its strategic growth. By acquiring AXA Investment Managers (AXA IM), BNP Paribas Cardif is poised to enhance its position within the asset management sector. This acquisition not only reflects the Group's commitment to expanding its capabilities but also signifies a long-term partnership with AXA Group, focusing on managing a substantial portion of its assets.
Enhancing European Asset Management
With more than EUR 1.5 trillion in assets under management, this acquisition is expected to position BNP Paribas Group as a leading force in the European asset management landscape. The initiative aims to strengthen its services for insurers and pension funds, with total assets nearing EUR 850 billion. The Group aspires to become the go-to leader in fund collection for private asset investments and is positioning itself as one of the main providers of Exchange-Traded Funds (ETFs) across Europe.
Combining Expertise and Innovations
The integration of AXA IM's vast expertise with BNP Paribas Asset Management and BNP Paribas Real Estate Investment Management (REIM) will result in a comprehensive platform that offers a wide array of traditional as well as alternative assets. With an enhanced global distribution network and a commitment to responsible investment, the new platform will foster innovation, ensuring that both institutional and individual clients derive maximum value from these offerings.
Progressing Towards Future Goals
Jean-Laurent Bonnafé, the Director and CEO of BNP Paribas, expressed his enthusiasm for the acquisition, emphasizing the strong customer service culture of BNP Paribas and the ambitious growth prospects that come with integrating AXA IM's talented teams. Together, they will work towards creating a European industrial project geared to serve clients better and drive sustainable growth.
Operational Synergies and Growth Projections
To facilitate this growth, joint working groups have already been established between BNP Paribas Cardif and AXA IM teams. These groups will collaboratively develop a strategic roadmap focused on offering improvements and enhanced services. Additionally, the merger of the legal entities of AXA IM, BNP Paribas AM, and BNP Paribas REIM aims to create a cohesive platform, pending consultations with employee representatives.
Leadership and Management Structure
Sandro Pierri, the CEO of BNP Paribas Asset Management, will oversee the Group’s asset management activities, while Marco Morelli, the Executive Chairman of AXA IM, will play a crucial role in chairing these activities. This leadership structure aims to harness the combined strengths of both organizations, streamlining operations and fostering collaboration.
Financial Outlook Following Acquisition
From a financial standpoint, the acquisition is poised to create a positive impact. Revenue growth is projected to exceed 5% (CAGR 24-26) by 2026, coupled with an average annual jaws effect of 1.5 points. The anticipated Return on Invested Capital (ROIC) is forecasted to surpass 14% by 2028 and exceed 20% by 2029. While the CET1 ratio of the Group is expected to face a slight impact, discussions with supervisory authorities are currently underway to mitigate any concerns.
About BNP Paribas
BNP Paribas stands as a leader in banking and financial services across Europe, operating in 64 countries with nearly 178,000 employees. The Group's diversified model enables it to provide tailored solutions to a wide range of clients, from individual consumers to large corporations. BNP Paribas is particularly recognized for its commitment to sustainable finance, aiming to contribute positively to future-oriented projects while maintaining stability and performance.
Contacting BNP Paribas
For further inquiries, BNP Paribas Press Contacts are available:
Hacina Habchi: hacina.habchi@bnpparibas.com +33 7 61 97 65 20
Sandrine Romano: sandrine.romano@bnpparibas.com +33 6 71 18 13 05
Frequently Asked Questions
What was the significant acquisition announced by BNP Paribas?
BNP Paribas Cardif announced the acquisition of AXA Investment Managers, enhancing its position in the asset management sector.
How does this acquisition impact BNP Paribas’s asset management capabilities?
The acquisition allows BNP Paribas to manage over EUR 1.5 trillion in assets and strengthen its services for insurers and pension funds.
Who will lead the BNP Paribas Group’s asset management activities post-acquisition?
Sandro Pierri, CEO of BNP Paribas AM, will lead the asset management activities, with Marco Morelli as Chair.
What are the projected financial outcomes following the acquisition?
The Group expects revenue growth to exceed 5% by 2026, with ROIC surpassing 14% by 2028 and 20% by 2029.
Where can I find more information about BNP Paribas and its services?
For more information, you can reach out to their press contacts or visit their official website to explore their offerings.
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