State Street, a financial services group, is reportedly exploring the potential acquisition of Société Générale Securities Services, the securities and custody business of the French banking-to-mobility and leasing conglomerate Société Générale, according to initial reports from Bloomberg. Sources close to the matter were cited in Bloomberg’s reporting on Wednesday 17 April.

According to the news agency, State Street has commenced preliminary discussions regarding this potential acquisition, with Société Générale valuing the business at over €1bn.

Société Générale’s latest quarterly report revealed that SGSS experienced a notable 47.6% decline in revenues in the last quarter of 2023, totaling €144m. The report also indicated a 17.5% contraction in revenues for 2023 compared to 2022, with stability (-0.7%) observed when excluding the impact of various equity participations’ valuation.

Notably, assets under custody and assets under administration were reported at €4.931trn and €579bn, respectively. The first-quarter 2024 results are slated for 3 May 2024.

According to Statec, the grand duchy’s statistical bureau, Société Générale employed 1,120 individuals as of 1 January 2023, while State Street had 550 employees in Luxembourg.

A representative of Société Générale stated to Delano that the group “never comments on market rumors.”

Editor's note, 18 April 2024, at 3:16 pm: The article has been updated with further details from a State Street representative who declined to comment.