Societe Generale has reached an agreement to acquire Commerzbank’s equity markets and commodities business (EMC), that manufactures and distributes structured and flow products as well as asset management solutions.
Activities included in the scope of this transaction are located in Frankfurt, London, Hong Kong, Paris, Luxembourg and Zurich. The deal excludes the cash equity brokerage and commodities hedging businesses of Commerzbank.
The acquisition of these activities from Commerzbank aims at strengthening the bank’s positioning in derivatives and investment solutions across asset classes.
It would eventually contribute to Lyxor’s development in Europe by boosting its ETF franchise and bolstering its active management offering with a product range to address the needs of German institutional clients in particular.
“Societe Generale and Commerzbank’s EMC franchises are complementary and present an important potential of synergies. This acquisition would further reinforce our Global Banking and Investor Solutions activities in line with our 2016-2020 strategic plan”, said Séverin Cabannes, deputy chief executive officer of Societe Generale.
“In addition, while complementing Lyxor’s ETF franchise, this acquisition would be transformational for our activities in Germany as it would enable Societe Generale to reach a new scale in the leading Eurozone economy. Upon integration, this transaction would bring numerous benefits to clients: the reach and geographical footprint, an extended cross-asset product set, the technology and expertise from two associated leading platforms.”
Societe Generale expects to receive all authorisations for the transaction during the second half of 2018. The deal would include the transfer of EMC’s trading books, client franchise as well as part of the IT infrastructure while the effective integration of activities and associated teams are expected to occur gradually from the end of year.