BNP Paribas has announced it is in exclusive talks to buy 100 per cent of AXA Investment Managers (AXA IM).

The agreed price for the acquisition, alongside the set up of a new partnership to manage a large part of the company’s assets, will total €5.1 billion.

The French bank said that a combination of its own asset management platforms with the newly formed business would see total assets under management reaching €1.5 billion, making it a “leading European player” in the sector.

It said that the new business would lead in the management of long-term savings assets for insurers, as well as pension funds, with €850 billion worth of assets.

The closing of the buyout is expected by mid-2025 following regulatory approvals.

“This project would position BNP Paribas as a leading European player in long-term asset management," said Jean-Laurent Bonnafé, director and chief executive, BNP Paribas. "Benefiting from a critical size in public and alternative assets, BNP Paribas would serve its customer base of insurers, pension funds, banking networks, and distributors more efficiently.

"The strategic partnership entered into with AXA, the cornerstone of this project, confirms the ability of both our groups to join forces. This major project, which would drive our growth over the long-term, would represent a powerful engine of growth for our group.”

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