Insurance group AXA has entered into an exclusive negotiation to sell its asset manager AXA Investment Managers (AXA IM) to BNP Paribas for cash proceeds of €5.1 bn.
AXA said it expected to receive an additional €0.3 bn consideration from the sale of AXA investment advisory Select to AXA IM prior to the closing of the proposed transaction.
The total estimated transaction value is expected to be €5.4 bn, representing a multiple of 15x 2023 earnings. 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 pan-European asset manager, with total assets under management of €1.5 trn.
AXA said that plans to exit the asset management business further emphasised the group’s strategy to simplify its business model and focus on its core insurance activities.
In particular, the company said that AXA’s life & savings business was well-positioned to grow, driven by the group’s strong distribution and product design capabilities. It also said that the firm's customers would benefit from a broader array of asset classes, including continued access to its alternatives asset management platform.
Thomas Buberl, AXA CEO said: '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.'
Jean-Laurent Bonnafé, director and CEO, BNP Paribas, added: '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.'
The completion of the transaction is subject to customary closing conditions, including the information and consultation of employee representative bodies, followed by the signing of the share purchase agreement and the receipt of regulatory approvals, and is expected to be finalised by the second quarter of 2025.
