French bank Societe Generale has reportedly agreed to buy Credit Agricole’s 50% stake in their jointly owned brokerage firm Newedge.
According to Bloomberg, an announcement to this effect may be made as soon as November 7.
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As part of the transaction, Societe Generale will slash its stake in their another joint venture Amundi Asset Management from 25% to about 20%, boosting Credit Agricole’s stake in the fund manager from 75% to about 80%.
The spokespersons for Credit Agricole and Societe Generale both declined to provide any comment on the matter.
Societe Generale tried to sell its stake in Newedge about two years ago, but was unable to find a buyer.
Initially, Societe Generale and Credit Agricole had planned to merge their investment banks, but talks were abandoned after regional lenders at Crédit Agricole opposed any such deal avoid a layoff blood bath.
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By GlobalDataThe lenders, however, went ahead with the merger of Crédit Agricole’s brokerage Calyon Financial and Societe Generale Fimat — a new unit that became Newedge in 2008.
Amundi was set up later in 2010, after the banks pooled resources to gain a steadier footing in the global asset management business.
