FRANCE - Crédit Agricole and Caisse Nationale des Caisses d’Epargne have confirmed they are looking at combining their securities services businesses - with a view to creating a “major player” in the industry.
The merged entity would have E1,200bn in assets under custody for European institutional clients and 2,300 staff, 40% outside France. The venture would have a net banking income of more than E450m in 2005.
The move would cover “the depositary bank, custody, clearing, fund administration and corporate trust services for institutional and corporate clients, in France and abroad”.
The banks said the venture would be the leading depositary bank for UCITS in France as well as the largest bank in terms of assets held with Euroclear France. And it would be the first ranking French fund administrator, and among the leading European players, with E570bn in assets under administration.
They said: “The two groups have already created, or are currently in the process of creating, specialised subsidiaries fully dedicated to the securities services activities.”
A new holding company, equally held by the two banks, would be set up. Crédit Agricole will sell CNCE the necessary number of shares of the new company – as well as offering a put option on these shares.
The resulting entity “would benefit from the financial strength of both parent companies” and have E300m in shareholder equity.
The two groups have already begun consulting with employee representatives. The deal is expected to be finalised on June 30 2005, pending supervisory authorisation.
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