Societe Generale, a French financial services company, has acquired 50% stake in Newedge, a derivatives brokerage unit of Credit Agricole’s for complete ownership.
Societe Generale Global Banking and Investor Solutions deputy head Christophe Mianné has said that the finalization of Newedge’s acquisition is a significant step in company’s strategy, which would position it as a prime player in the post trade services industry.
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"We will be able to offer our clients the best of both institutions: the financial guarantee and financing capacities of a leading bank, allied with Newedge’s leading market positions, in particular in prime brokerage and clearing services. We are thus strengthening our international presence, whilst positioning ourselves favorably in the new regulatory environment," added Mianné.
As part of the transaction, the company has also divested 5% of its stake in Amundi, an asset management joint venture with Credit Agricole to the latter. With this, Societe Generale’s stake in the venture has come down to 20%.
Societe Generale is looking to amalgamate its operations with Newedge’s execution and clearing services, providing clients with a total package of market activities offering that include cross asset research and hedging solutions, and prime brokerage.
Having received the necessary regulatory approvals, the agreements are expected to have a moderate positive impact on the group’s earnings.
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