BNP Paribas expects to complete purchase of AXA IM in July

After entering into exclusive negotiations on 1 August, AXA and BNP Paribas (BNPQY) Cardif signed a Share Purchase Agreement for AXA Investment Managers. The closing is expected in early July 2025. The company said, “In this context, the BNP Paribas Group fully confirms the strategic and industrial interest of the transaction to build a leading platform in asset management that will allow the Group to become the forefront European player in the management of long-term savings assets for insurers and pensionfunds. This platform will benefit from AXA IM’s leading market position and its team’s expertise specialised in private assets, which will drive further growth with both institutional and retail investors. This acquisition aligns perfectly with the Group’s core mission of supporting the economy by mobilising savings to finance future-oriented projects, in the best interests of its clients.” The ECB has recently expressed its opinion on the prudential treatment for the acquisition of asset managements companies. Should this interpretation be implemented and given the current status of the internal analyses carried out by the BNP Paribas Group, the anticipated impact on BNP Paribas Group’s CET1 ratio would stand at approximately -35 bps and the expected return on invested capital of the transaction would be above 14% in the third year and more than 20% in the fourth year. This impact is to be compared with an impact on the Group’s CET 1 ratio of -25 bps and an expected return on invested capital of 18% in the third year, presented at the launch of the transaction. As a consequence, under this interpretation, neither the Group’s overall profitability objectives, growth trajectory, nor its equity and CET1 trajectory would be modified. Specifically, the launch of the share buyback programme, announced in February, to which the ECB has already given its approval, is maintained. More generally, the Group’s distribution policy in the form of dividends and return to shareholders remains unchanged.