AXA announced today that it has entered into an exclusive negotiation to sell its asset manager AXA Investment Managers (AXA IM) to BNP Paribas for cash proceeds* of €5.1b. In addition, AXA would receive €0.3b consideration from the sale of Select*** to AXA IM before the closing of the proposed transaction. The total estimated transaction value is expected to be €5.4b, representing a multiple of 15x 2023 earnings. Under the terms of the proposed transaction, AXA and BNP Paribas would also enter into a long-term strategic partnership under which BNP Paribas would provide investment management services to AXA. The combination of AXA Investment Managers and BNP Paribas would create a leading European asset manager, with total assets under management of €1.5t****.
The intention to exit the Asset Management business further emphasises the Group’s strategy to simplify its business model and to focus on its core insurance activities. In particular, AXA’s Life & Savings business is well-positioned to grow, driven by the Group’s strong distribution and product design capabilities, and our customers will benefit from a broader array of asset classes, including continued access to a best-in-class Alternative asset management platform. AXA retains full authority over product design, asset allocation and asset-liability management decisions.
Thomas Buberl, CEO of AXA, said: “AXA Investment Managers has been a home-grown success story for the AXA Group. Over the past 25 years, we have built an exceptional franchise anchored in investment expertise, a relentless client focus and a proven track record on sustainability and private assets. Thanks to the quality of its teams, AXA IM is a leading player today, notably in Alternatives. In the context of a rapidly consolidating and highly competitive asset management industry, the Group has considered different options to support the future development of AXA IM and to best align with the strategic goals of AXA to further simplify its business profile and grow its insurance businesses.
By joining forces with BNP Paribas, AXA IM would become a global asset manager with a wider product offering and a mutual objective to further their leading position in responsible investing. This long-term partnership would provide AXA and its customers with continued access to a wide range of best-in-class investment solutions that would further strengthen our strategic ambitions in Life & Savings. I would like to thank all AXA IM employees for their unwavering commitment, and their continued focus on delivering value for our clients.”
The completion of the transaction is subject to customary closing conditions, including the information and consultation of employee representative bodies, followed by the signing of the Share Purchase Agreement and the receipt of regulatory approvals, and is expected to be finalised by the second quarter of 2025.
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*For 100% share capital of AXA IM, of which 98% is owned by the AXA Group (67% by AXA SA and 31% by other AXA entities), subject to price adjustment mechanisms.
**Underlying earnings per share CAGR 2023-2026E between 6% and 8%, Underlying return on equity between 14% and 16% over 2024E to 2026E, over Euro 21 billion cumulative organic cash upstream over 2024E to 2026E.
***Select (formerly named ‘Architas’) is an AXA company offering investment solutions, including management of funds, investment management services, advisory services, and investment-related services, to retail customers in France, Belgium, Hong Kong, and Indonesia.
****As of December 31st, 2023, based on companies’ financial disclosures.
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