France-based La Banque Postale Group (LBP) has signed a memorandum of understanding to buy fund manager La Financière de l’Échiquier (LFDE) from Groupe Primonial.
Founded in 1991, LFDE offers entrepreneurial asset management solutions.
With a workforce of over 140 employees across Germany, Austria, Spain, Italy, Switzerland and the Benelux countries, the firm had €11bn in assets under management as of 31 December 2022.
As part of the new deal, La Banque Postale Asset Management (LBP AM), a subsidiary of LBP and Aegon Asset Management, will buy 100% of the capital and voting rights of LFDE.
The deal will increase the French firm’s total assets under management to €67bn and expand its footprint to nine countries in Europe.
Besides, the deal will see the consolidation of three brands, namely LBP AM, LFDE and Tocqueville Finance, a 100% subsidiary of LBP AM.
Both LBP Group and Groupe Primonial will reach a final agreement once they inform about the deal to relevant employee representative bodies, with plan to complete the process by the second quarter of this year.
The planned deal, which awaits approval from Autorité des Marchés Financiers (AMF) and Autorité de la Concurrence, is expected to be closed by the end of Q3 2023.
La Banque Postale chairman of the executive board Philippe Heim said: “The acquisition of La Financière de l’Échiquier would be a growth accelerator for LBP AM, which would strengthen its activities by integrating recognized teams.
“With this transaction, LBP AM would reach to the podium of multi-specialist conviction managers in Europe and give itself the ability to address a wider range of clients, thanks to the complementarities of its sales forces.
“La Banque Postale Group thus confirms its desire to develop both its asset management and international activities.”