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 Frédér...
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