The asset management operations of Credit Agricole SA and Société Générale are set to be merged into one entity, with Credit Agricole taking control of 70 per cent of operations and Société Générale the remainder.
The two groups have signed a preliminary agreement to combine their asset management operations, which includes all of the Credit Agricole Asset Management (CAAM) group, the asset management arm of Credit Agricole SA and the European and Asian activities of Société Générale’s asset management operations.
Yves Perrier, currently chief executive of CAAM, will become chief of the new entity.
This merger will make the group the fourth largest asset manager in Europe and the ninth largest in the world, with both strong retail and institutional offerings.
The combined entity will have a product offering across a range of asset classes, including fixed income, equities, guaranteed products and currencies. The combined entity could consider a stock exchange listing within a five-year timeframe.
Société Générale will appoint one-third of the directors of the new board, while the chairman will be appointed by Credit Agricole SA and the vice-chairman by Société Générale.
Georges Pauget, chief executive of Credit Agricole SA, said the decision comes as banks review business models in the “rapidly evolving financial services sector landscape”.
The final agreement between Société Générale and Credit Agricole SA is subject to consultation with the relevant regulatory authorities and the various joint-venture partners.
