AXA to sell AXA Investment Managers to BNP Paribas
AXA has entered into an exclusive negotiation to sell its asset manager AXA Investment Managers to BNP Paribas for cash proceeds of €5.1 billion.
In addition, AXA would receive €300 million consideration from the sale of Select, an AXA company offering investment solutions, to AXA IM prior to the closing of the proposed transaction.
The total estimated transaction value is expected to be €5.4 billion, representing a 15x underlying earnings multiple (2023). Under the terms of the proposed transaction, AXA and BNP Paribas would also enter into a long-term strategic partnership under which BNP Paribas would provide investment management services to AXA.
The combination of AXA Investment Managers and BNP Paribas would create a leading European asset manager, with total assets under management of €1.5 trillion.
The intention to exit the asset management business further emphasizes the group’s strategy to simplify its business model and to focus on its core insurance activities.
“AXA Investment Managers has been a homegrown success story for the AXA Group. Over the past 25 years, we have built an exceptional franchise anchored in investment expertise, a relentless client focus and a proven track record on sustainability and private assets. Thanks to the quality of its teams, AXA IM is today a leading player, notably in Alternatives. In the context of a rapidly consolidating and highly competitive asset management industry, the Group has considered different options to support the future development of AXA IM and to best align with the strategic goals of AXA to further simplify its business profile and grow its insurance businesses. 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. This long-term partnership would provide AXA and its customers with continued access to a wide range of best-in-class investment solutions that would further strengthen our strategic ambitions in Life & Savings. I would like to thank all AXA IM employees for their unwavering commitment, and their continued focus on delivering value for our clients.” – Thomas Buberl, CEO of AXA.
“I would like to extend a warm welcome to AXA IM teams who would join BNP Paribas as part of the completion of the project. In line with the model developed by AXA IM, BNP Paribas will remain deeply committed to deploying this new enlarged long-term savings management platform to serve insurers, pension funds as well as bank and distribution networks.” – Jean-Laurent Bonnafé, Director and Chief Executive Officer of BNP Paribas.
