BNP Paribas to Acquire AXA IM for $5.51 Billion

Paris-based BNP Paribas Group has entered into negotiations with AXA to acquire 100% of AXA Investment Managers (AXA IM), representing close to $917.63 billion assets under management, together with an agreement for a long-term partnership to manage a large part of AXA’s assets.

The agreed price for the acquisition and the set-up of the partnership is of $5.51 billion at closing, which is expected around middle of 2025 once regulatory approvals have been obtained, BNP Paribas said on Thursday.

The signing of the proposed transaction, expected by the end of the year, is subject to the information process and consultation of the employees’ representative bodies.

BNP Paribas Cardif, the insurance business of BNP Paribas, after having directly proceeded to the proposed transaction as principal, would have the opportunity to rely on this platform for the management of up to $172.73 billion of its savings and insurance assets.

With the combined contribution of BNP Paribas’ asset management platforms, the newly formed business, which total assets under management would amount to $1.62 trillion, would become a leading European player in the sector.

Specifically, it would become the European leading player in the management of long-term savings assets for insurers as well as pension funds, with $917.63 billion of assets, leveraging powerful platforms of public and private assets.

The acquisition would also allow the combined businesses to benefit from AXA IM Alternatives’ leading market position and track record in private assets which will drive further growth with both institutional and retail investors.

With a Common Equity Tier 1 (CET1) impact of circa 25 bp for BNP Paribas, the expected return on invested capital of the transaction would be above 18% as soon as the 3rd year, following the end of the integration process.

Leader in European Market

BNP Paribas Director and CEO Jean-Laurent Bonnafe said that this project would position BNP Paribas as a leading European player in long-term asset management. Benefiting from a critical size in public and alternative assets, BNP Paribas would serve its customer base of insurers, pension funds, banking networks and distributors more efficiently.

“The strategic partnership entered into with AXA, the cornerstone of this project, confirms the ability of both our groups to join forces. This major project, which would drive our growth over the long-term, would represent a powerful engine of growth for our Group.” Bonnafe added.

AXA CEO Thomas Buberl said that AXA Investment Managers has been a home grown success story for the AXA Group. Over the past 25 years, they have built an exceptional franchise anchored in investment expertise, a relentless client focused and a proven track record on sustainability, he said.

Thanks to the quality of its teams, AXA IM is today a leading player, notably in Alternatives in Europe. By joining forces with BNP Paribas, AXA IM would become a global asset manager with a wider product offering and a mutual objective to further their leading position in responsible investing. I would like to thank all AXA IM employees for their unwavering commitment, and their continued focus on delivering value for our clients,” Buberl added.