Societe Generale - France’s third-largest listed bank, has agreed to launch a global equity venture with the US investment company AllianceBernstein. The joint venture will focus on cash equities and equity research, according to the two financial groups.
The deal with Bernstein would allow SocGen to compete with its Paris rival BNP Paribas and other leading Wall Street banks Goldman Sachs and JP Morgan. The joint venture would bring Bernstein’s strengths in research and SocGen’s strengths in capital markets together. In terms of market insights, the merged entity would benefit from Bernstein’s strong presence in North America and Asia whereas SocGen holds a stronger position in Europe.
Robert van Brugge, CEO of Bernstein Research Service, will become the CEO of the joint venture with Stephane Loiseau, head of SocGen's cash equities business, becoming his deputy. The new business will be headquartered in London.
SocGen will own 51% of the new entity, with AllianceBernstein owning the remaining 49%. SocGen has the option to take 100% ownership after 5 years, the French bank said. The deal is expected to close by late 2023, subjecting to regulatory approval.
Written by: Quynh Chi Le
Sources: Financial Times and Reuters
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