BNP Paribas and AXA

BNP Paribas is engaged in exclusive negotiations with AXA to acquire AXA Investment Managers for approximately €5.1 billion ($5.5 billion), which includes managing €850 billion in assets under management. The deal, which also involves the acquisition of AXA's fund services business, Select, for €300 million, would create a combined asset management entity with €1.5 trillion in total assets, positioning it as the second-largest asset manager in Europe. The transaction is expected to close by mid-2025, pending regulatory approvals and employee consultations, and includes a long-term partnership where BNP Paribas will provide investment services to AXA. AXA anticipates that the sale will reduce its annual earnings by around $440 million but will also generate a one-off gain of approximately $2.42 billion. Additionally, AXA plans to initiate a $4.18 billion share buyback post-transaction to mitigate the earnings impact. The acquisition reflects BNP Paribas's strategy to strengthen its capabilities in alternative assets to better serve institutional clients like insurers and pension funds.