French financial services firms Credit Agricole and Societe Generale have signed a preliminary agreement in order to combine their asset management operations. This new entity will combine the entirety of the CAAM group, the asset management arm of Credit Agricole and the European and Asian activities of Societe Generale’s asset management business, as well as 20% of TCW, Societe Generale’s asset management subsidiary in the U.S.
Credit Agricole will own 70% of the combined asset management business and Societe Generale will own the remaining 30%.
Societe Generale will appoint one-third of the directors of the new board. The chairman of the new entity’s board will be appointed by Credit Agricole and the vice-chairman by Societe Generale. Yves Perrier, currently CEO of CAAM, will become CEO of the new entity.
Georges Pauget, CEO of Credit Agricole, said: The agreement we have signed with Societe Generale is based on industrial logic, seeking to combine production efficiency with the power of distribution. This combination reflects the strategic logic of the Credit Agricole business model which is based on an overall approach from product design to market launch.
