Natixis, Banque Postale negotiate merger of AEW Europe with Ciloger

Natixis and La Banque Postale are negotiating the conditions of a merger of their real estate investment managers AEW Europe and Ciloger.

The operation would create a new European colossus with over €23 bn of assets under management and the third largest manager in the French retail market.

AEW Europe, which is 60% owned by Natixis Global Asset Management and 40% owned by CDC Group, manages €18.1 bn of assets per year-end 2015.

Ciloger, the portfolio management company of the real estate investment schemes marketed by La Banque Postale and Caisses d'Epargne, manages around €4.5 bn of assets (at end-March 2015). Its current owners are La Banque Postale (90%) and CNP Assurances (10%).

'The operation would give Ciloger 'a European investment capacity to serve the entire retail banking and insurance networks of the BPCE Group and La Banque Postale as well as external clients, particularly independent financial advisors', the companies said in a statement.

For Natixis Global Asset Management, this partnership with La Banque Postale will strengthen AEW Europe and its range of expertise in real assets and is fully in line with its multi-affiliate strategy.

Under the deal currently being discussed, the CDC Group’s 40% stake in AEW Europe would be acquired by Natixis Global Asset Management prior to the completion of the transaction.

After completion of the proposed deal, Natixis Global Asset Management is expected to own 60% of AEW Europe with the remaining 40% to be held by La Banque Postale.

The companies said they will present the plan for discussion to the employee representative bodies. The deal is subject to obtaining the required regulatory approvals.