For the two companies, the acquisition will create a “pan-European leader” in wealth management.
Degroof Petercam is an independent family group founded in 1871. Its client assets currently amount to some €71bn and it has over 1,500 employees spread throughout offices in nine countries. Its business is in private banking in Belgium, Luxembourg and France, as well as asset management, investment banking and asset services further abroad.
For its part, Indosuez Wealth Management is also a storied firm, founded in 1858 in order to dig and operate the Suez Canal. In 1910 it began operating in Luxembourg and, since 1996, has been part of the Crédit Agricole group.
The acquisition is to be carried out together with the CLdN group, the main shareholder of Degroof Petercam and which will hang onto 20% of the company.
The combined entity will benefit, says the press release, “from global growth drivers and [will position] itself as a consolidator of the sector in Europe.”
“This project will provide clients with high value-added services thanks to the combined expertise and access to the Crédit Agricole group’s international network and financing capabilities.”
For Degroof Petercam employees, the statement continues, the deal presents an opportunity to join a highly international group (present in 46 countries) with a wide range of expertise. Indosuez will gain a new client base and expand its expertise in financial management advice and fund offerings (particularly ESG funds).
Degroof Petercam CEO Hugo Lasat comments: “The proposed alliance with Indosuez Wealth Management will provide us with a stable shareholder, backed by a leading global player. It is also a solid strategic partner who will support the Degroof Petercam brand and who knows our activities inside out. This project will enable us to benefit from the strength of an organisation such as the Indosuez Group, while retaining our agility and entrepreneurial spirit in the interests of our clients.”
Jacques Prost, CEO of Indosuez, adds: “This proposed alliance will be an important step in our development in Europe, in line with our strategic plan, and will make Belgium our second domestic market. We look forward to working with the Degroof Petercam team.”
The acquisition is subject to approval from the relevant regulators and competition authorities, and is expected to be finalised in 2024.
Part of the transaction also includes a long-term partnership agreement with CLdN, which will include liquidity mechanisms.
Access the full press release here.