Further to the preliminary agreement announced on 26th January 2009, Crédit Agricole and Société Générale have signed a final agreement to combine their asset management operations. The combined entity now holds €591 billion of assets under management.
Certain adjustments have been made to the framework of the transaction. The new entity (CAAM-SGAM) still includes 100% of the activities of the CAAM group, to which Société Générale is bringing its fundamental investment activities, 20% of TCW and its joint-venture in India.
However, on account of local regulatory constraints and agreements with partners, SGAM’s joint-ventures in China and Korea will not be contributed. In this context, 75% of the new entity will be held by Crédit Agricole SA and 25% by Société Générale, taking into account this change in scope, the level of equity capital contributed by the two entities, and the latest operating framework.
As originally agreed, Société Générale will appoint one third of the directors of the board of the new entity and, under group governance, will control the equivalent of one third of voting rights. Yves Perrier, the current CEO of CAAM, will become CEO of the new group.
The operation remains subject to approval from the relevant regulatory authorities. As a result, and as indicated in January, the transaction is expected to close during the 4th quarter of this year.
