French banking giants Crédit Agricole and Société Générale are to create new €638bn asset manager after outlining plans to merge their fund operations.
The new entity, which will have a gross operating income of €900m, will be 70% owned by Crédit Agricole and 30% Société Générale.
It will consist of the entire Crédit Agricole Asset Management business and Société Générale Asset Management's European and Asian activities, as well as 20% of its US fund subsidiary TCW.
Last month, Société Générale sold its UK asset management division to hedge fund company GLG Partners.
"This major transaction will create a European leader in asset management, capable of tackling all the new challenges faced by the industry," Société Générale CEO Frédéric Oudéa says.
"It will have all the relevant attributes to become an industry leader and play a role in the market consolidation."IFAonline
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