SOCIETE GENERALE: SOCIETE GENERALE IS CONSIDERING FULL ACQUISITION OF NEWEDGE
Paris, 7 November 2013
Societe Generale is considering the full acquisition of NEWEDGE to provide an
integrated client offer from market activities to post-TRADE SERVICES
Societe Generalehas entered into exclusive negotiations with Credit Agricole
to acquire the additional 50% stake in Newedge, their commonly owned
joint-venture focused on derivatives brokerage, which would bring its
shareholding to 100%.
In line with Societe Generale's strategy to further build on its core
businesses and develop synergies, the full acquisition of Newedge would be a
key development in the area of market activities aligned with evolving
regulatory trends towards more centralised clearing of OTC products.
The combination of the two complementary franchises would bring a new
dimension to Societe Generale's Global Banking and Investor Solutions division
in terms of client offer and geographical reach while enabling additional
"This transaction would enable us to give our clients access to an integrated
offer across global markets, from execution to prime and clearing services on
both listed and OTC products", said Didier Valet, Head of the division. "In
addition, due to the evolution of the regulatory framework, we want to invest
in post trade activities in order to enlarge our client offer."
The financial terms under discussion in the exclusive negotiations between
Societe Generale and Credit Agricole are as follows:
*Societe Generale would acquire from Credit Agricole CIB the remaining 50%
stake in Newedge, for a consideration of EUR 275m.
*In parallel, Societe Generale would sell to Credit Agricole SA a 5% stake
in Amundi, their jointly owned asset management company, for an amount of
EUR 337.5m, taking Societe Generale's stake in Amundi from 25% to 20%.
This sale would not have any impact on the current governance structure of
the company. Amundi would remain the leading provider of savings solutions
across Societe Generale's retail banking networks; within the framework of
the transaction, the distribution agreements would be extended through the
end of 2019 from the initial expiration date scheduled for the end of
At closing, these transactions would result in a net impact on the Group's
earnings expected to be positive and an approximately 10 bps negative impact
on the Group's Basel 3 Core Tier One ratio.
The completion of the project is subject to a final agreement between the
parties, the authorisation of the relevant regulatory bodies and the
consultation with the workers councils in France.
Societe Generale is one of the largest European financial services groups.
Based on a diversified universal banking model, the Group combines financial
solidity with a strategy of sustainable growth, and aims to be the reference
for relationship banking, recognised on its markets, close to clients, chosen
for the quality and commitment of its teams.
Societe Generale has been playing a vital role in the economy for 150 years.
With more than 154,000 employees, based in 76 countries, we accompany 32
million clients throughout the world on a daily basis. Societe Generale's
teams offer advice and services to individual, corporate and institutional
customers in three core businesses:
Retail banking in France with the Societe Generale branch network, Credit du
Nord and Boursorama, offering a comprehensive range of multichannel financial
services on the leading edge of digital innovation;
International retail banking, financial services and insurance with a presence
in emerging economies and leading specialised businesses;
Corporate and investment banking, private banking, asset management and
securities services, with recognised expertise, top international rankings and
Societe Generale is included in the main socially responsible investment
indices: Dow Jones Sustainability Index (Europe), FSTE4Good (Global and
Europe) and all the STOXX ESG Leaders indices.
For more information, you can follow us on twitter @societegenerale or visit
our website www.societegenerale.com.
Newedge is a 50/50 joint venture between Societe Generale and Crédit Agricole
CIB, focusing on global multi-asset brokerage business, with a world-leading
position in the execution and clearing of listed derivative products. Newedge
is present across 85 financial markets in North America, Europe and Asia.
Newedge provides a wide range of trade and post trade services to
institutional and corporate clients, in particular through execution and
clearing services on listed options and futures contracts on fixed income,
foreign exchange, equities and commodities and on OTC markets. For the first 9
months of 2013, Newedge generated a Net Banking Income of EUR 516m.
About Global Banking and Investors Solutions
Global Banking and Investor Solutions brings together Corporate & Investment
Banking, Asset Management as well as Private Banking and Investor Services,
focusing on long-term relationships with Corporates, Financial Institutions,
Public Sector, Wealth Managers, and High Net Worth Individuals. It combines
all of Group's expertise offering integrated and tailor made solutions,
meeting clients' specific needs.
At the core of Societe Generale's universal banking business model, this
poleis a leading international player present in 53 countries with more than
18,000 professionals servicing clients across the following businesses:
*Corporate & Investment Banking with Societe Generale Corporate &
Investment Banking, being a leading player in investment banking,
financing and markets activities;
*Private Banking with Societe Generale Private Banking, being one of the
leading private banks worldwide;
*Asset Management with Lyxor Asset Management, the specialised asset
manager and 100% owned by Societe Generale as well as AmundiAsset
Management - 25% owned by Societe Generale - one of the largest asset
managers in the industry worldwide.
*Investor Services with Societe Generale Securities Services, ranked in the
TOP 10 of global custodians and #2 in Europe, and Newedge which is a
leading multi-asset brokerage, and a 50/50 joint venture by Societe
Generale and Credit Agricole CIB.
Societe General_ CP Newedge
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information contained therein.
Source: SOCIETE GENERALE via Thomson Reuters ONE
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