Analysis-BNP Paribas swoop on AXA fund business fuels hopes for more deals

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BNP Paribas News

AXA Investment Managers,Asset Manager,Fund Managers

BNP Paribas' talks to buy the investment business of insurer AXA will trigger more deals, bankers say, as European money managers seek to fend off U.S...

PARIS/LONDON - BNP Paribas' talks to buy the investment business of insurer AXA will trigger more deals, bankers say, as European money managers seek to fend off U.S. rivals and as customers demand cheap technology-driven investing.

Compounding this challenge, European funds have recently found it tough to maintain returns in volatile markets, while high price inflation in the region also drove up their costs. After a slow build-up, talks accelerated over the past few weeks, culminating in conversations between BNP and AXA - led by BNP CEO Jean-Laurent Bonnafé and AXA CEO Thomas Buberl - that finalised the deal, said one of the people.

The takeover is BNP's third largest deal ever, and would be the tenth biggest unveiled so far in Europe this year across all sectors, based on LSEG data, as M&A activity hots up after a lackluster 2023.

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BNP in talks to buy Axa investment managers in US$5.5 billion dealBNP Paribas SA’s Jean-Laurent Bonnafe built a reputation as reluctant dealmaker in more than 12 years at the helm. Now he’s willing to bet €5.1 billion (US$5.5 billion) that demand for alternative assets will continue to increase.
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