AXA has officially concluded the sale of AXA Investment Managers (AXA IM) to BNP Paribas, securing cash proceeds of €5.1 billion. In a related transaction, AXA also completed the divestment of its Select platform to AXA IM for €0.3 billion, bringing the total value of the deal to €5.4 billion, in line with previously announced terms.
As part of the agreement, AXA and BNP Paribas have established a long-term strategic partnership under which BNP Paribas will provide investment management services to AXA. Despite the transition, AXA will retain control over key functions such as product design, asset allocation, and asset-liability management.
The integration of AXA IM into BNP Paribas boosts the combined entity’s total assets under management to €1.5 trillion, cementing its position among Europe’s largest asset managers.
AXA acknowledged the contributions of AXA IM employees over the past 25 years, recognising their role in shaping the firm’s success and growth.
Financially, the transaction is expected to result in a one-off net income gain of approximately €2.2 billion for AXA. However, the group anticipates a corresponding annualised reduction in underlying earnings of around €0.4 billion.
To offset the impact of this earnings dilution, AXA has announced plans for a share buyback programme of up to €3.8 billion, subject to market conditions. Further details will be disclosed in due course.
BNP Paribas has revised its projected financial return from the transaction, now targeting a return on invested capital of over 14% by the third year post-completion. This marks a reduction from the initial estimate of 18%, driven by updated assumptions regarding capital treatment under banking regulations.
The transaction is also expected to reduce BNP Paribas’s Common Equity Tier 1 (CET1) ratio by approximately 35 basis points.
Strategically, the acquisition enhances BNP Paribas’s capabilities in the private markets sector. AXA IM adds a robust suite of private asset strategies—including infrastructure, real estate, and private debt—which will now be integrated into BNP Paribas’s offerings.
The acquisition positions BNP Paribas among the leading asset managers in Europe. The combined group now ranks just behind Amundi, currently managing approximately €2.16 trillion in assets.
