Indosuez Wealth Management, a subsidiary of Crédit Agricole, said today (4 June) it had completed the acquisition of Belgium wealth manager Degroof Petercam, of which it becomes majority shareholder alongside CLdN Cobelfret, its historical shareholder.
The transaction, which has obtained the required approvals from the banking and competition authorities, would allow Degroof Petercam teams to join forces with Indosuez Wealth Management, creating a European leader in wealth management, the statement said.
It would also strengthen Crédit Agricole's presence in Belgium and will generate significant synergies with its various business lines.
"This acquisition is amongst the most significant transactions in the industry in the past 10 years in Europe. Indosuez Wealth Management, which has supported its clients for more than 150 years, is now present in 16 territories, mainly in Europe, as well as in Asia Pacific and the Middle East. With approximately €200bn in client assets, nearly 1.6 billion euros net banking income and 4,500 employees, the new group will form a European leader in wealth management", the statement said.
Indosuez Wealth Management said clients would benefit from an enhanced value proposition leveraging on the complementary expertise of the two entities:
- Degroof Petercam’s advisory services to entrepreneurs, investment advice and fund offerings in particular ESG, and its fund servicing capabilities;
- the extensive range of services of Indosuez Wealth Management including structured products, private equity and real estate, as well as its financing capacity and international network.
This value proposition and service continuum includes Advisory, Financing, Investment Solutions, Fund servicing, Technology and Banking Solutions as well as access to Crédit Agricole Group's international network, expertise and financing capabilities.
The enhanced ESG offering enables clients to meet their growing demand across all asset classes, management approaches (advisory, discretionary) and financing.
A team of 4,500 employees now embodies the Group's client, human and societal projects. This alliance will provide each employee with new development and career opportunities within Crédit Agricole Group, the world's 10th largest bank with diverse expertise and a presence in over 46 countries worldwide.
Jacques Prost (pictured), chief executive officer of the Indosuez group said: "I am delighted to welcome Degroof Petercam's teams and extensive expertise to our Group today. This acquisition is a transformative and exciting project that reshapes our scope and establishes a European leader in wealth management. It enhances our value proposition with one of the most comprehensive offerings in the market for all our wealthy private clients and families, entrepreneurs and professional investors. It allows us to generate significant synergies with the different activities of the Crédit Agricole Group. Now that this union has become a reality, all our teams across our regions will unite to pool our strengths, shape this new entity and write a new chapter in our collective history."
Hugo Lasat, chief executive officer of Degroof Petercam said: "With the complementary expertise of the two entities combined with the power of the network and the financial capabilities of Indosuez Wealth Management, we will be able to go further in supporting our clients. Indosuez will leverage the strengths and the teams at Degroof Petercam and DPAM. We take pride in the progress we’ve made with the support of our historical shareholders and thanks to the commitment of our team for which I am grateful. This alliance opens up great prospects and opportunities for both clients and staff members."
Christian Cigrang, chairman of the board of directors of CLdN Cobelfret said: "Founded in 1871 and 1875 respectively, Degroof Petercam and Indosuez share an exceptional historical heritage and contribute to economic prosperity in their respective markets. The integration of Degroof Petercam with Indosuez, a subsidiary of Crédit Agricole S.A., brings significant growth prospects offered by a global player, while maintaining its entrepreneurial identity and anchoring in the markets where it operates."
CA Indosuez now controls 65% of the capital of Bank Degroof Petercam alongside CLdN Cobelfret, which holds nearly 20% of the capital. CA Indosuez will shortly submit a filing with the Belgian financial services and markets authority (FSMA) with the intention of launching a voluntary public takeover bid for the shares held by the minority shareholders of Bank Degroof Petercam.
