AXA has entered into an exclusive negotiation to sell its asset manager, AXA IM, to BNP Paribas for cash proceeds of €5.1bn.

This would come on top of €300m that BNP Paribas would pay additionally for the acquisition of Select, a company owned by AXA that offers investment solutions, such as management of funds.

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 IM and BNP Paribas would create an asset manager with total AuM of €1.5trn.

AXA CEO, Thomas Buberl, said: “In the context of a rapidly consolidating and highly competitive asset management industry, the AXA Group has considered different options to support the future development of AXA IM and to best align with the strategic goals of AXA to 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 its 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 and savings.”

This article was originally published on our sister website, Insurance Asset Management.

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