Yearly fixed dividend danger for AXA: billions at stake
In a significant move that reshapes the European fund landscape, insurance giant AXA has sold its fund subsidiary, AXA Investment Managers (AXA IM), to BNP Paribas for €5.1 billion in cash. This strategic move marks a new chapter for AXA IM and strengthens BNP Paribas' position in the asset management sector.
For AXA, the sale forms part of a strategic partnership whereby BNP Paribas Cardif will manage a large portion of AXA Group's assets under this new platform. This move allows AXA to focus on its core insurance business while still benefiting from expert asset management services.
The acquisition significantly strengthens BNP Paribas' market position in asset management, especially in private assets, which are key growth drivers. The consolidation creates one of Europe's largest asset managers with over €1.5 trillion in assets under management (AUM), positioning BNP Paribas as a leader in long-term savings management for insurers and pension funds, as well as in private asset investment and ETF provision across Europe.
The deal brings movement to the European financial sector, with AXA streamlining and focusing on its core business, and BNP Paribas building its position. The transaction reshapes the European fund landscape by creating a top-tier player with expanded offerings and scale focused on both traditional and alternative investments.
AXA IM brings expertise and products in infrastructure, real estate, and private debt to BNP Paribas. operationally, AXA's annual operating results will decrease by around €0.4 billion due to the departure of AXA IM. To compensate for the loss, AXA plans a share buyback program of up to €3.8 billion, subject to market conditions.
Financially, AXA expects a one-time net gain of approximately €2.2 billion from the deal. The total value of the transaction, including the sale of the Select unit, is €5.4 billion. AXA's WKN is 855705.
Strategically, BNP Paribas gains strength in the private markets segment through the acquisition of AXA IM. This consolidation creates a comprehensive asset management platform with enhanced innovation and a broader global distribution network. BNP Paribas aims to become the European leader in fund collection for private asset investments and gains enhanced scale and capabilities in responsible investment.
The deal represents an important industrial consolidation in European asset management, likely intensifying competition and fostering further platform integrations among major players. This move comes as the European asset management market continues to evolve, with players seeking to consolidate and expand their offerings to stay competitive.
In a statement, AXA CEO Thomas Buberl praised the work of AXA IM's employees over the past 25 years. He expressed confidence in the future of AXA IM under BNP Paribas, stating that the long-term partnership between the two companies will create a strong foundation for the future of AXA IM.
With the acquisition, BNP Paribas becomes one of the largest asset managers in Europe, with around €2.16 trillion in AUM. The move positions BNP Paribas as an investment giant, right behind industry leader Amundi. The sale of AXA IM to BNP Paribas creates a strong foundation for the future of AXA IM, as it continues to provide investment management services to AXA under the partnership.
The acquisition of AXA Investment Managers (AXA IM) by BNP Paribas will have financial implications for AXA, as they expect a one-time net gain of approximately €2.2 billion from the deal. Furthermore, AXA plans a share buyback program of up to €3.8 billion to compensate for the loss of AXA IM's annual operating results, which are estimated to decrease by around €0.4 billion.
