French bank Crédit Agricole, which reported record second-quarter results on Friday, is set to acquire a majority stake in Belgian private investment bank Degroof Petercam via its own private bank, Indosuez Wealth Management. The deal values Degroof Petercam at €1.55bn.
Crédit Agricole will ultimately control around 80% of Degroof Petercam’s capital, alongside the Cigrang family, an Antwerp ship-owning family.
In a statement, Degroof Petercam said the proposed acquisition was being carried out in partnership with the CLdN group, Degroof Petercam’s reference shareholder, “which would remain in the capital to the tune of around 20%, testimony to the desire to preserve the group’s roots and domestic foothold in Belgium in line with the Crédit Agricole group’s culture of partnerships.”
“CLdN, which joined Degroof Petercam’s shareholding structure in 2011, is increasing its stake to around 20%,” said Christian Cigrang, chairman of the board of directors of the CLdN group, in a press release.
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Degroof Petercam’s client assets amount to €71 billion. Indosuez Wealth Management, meanwhile, has €130 billion in assets under management, placing the Crédit Agricole subsidiary among the world’s leading wealth management firms.
“The alliance of Degroof Petercam and the Indosuez Wealth Management group would create a pan-European leader in wealth management benefiting from global growth drivers and positioning itself as a consolidator of the sector in Europe.”
The finalisation of the agreement between CA Indosuez Wealth (Europe) and Degroof Petercam is subject to the approval of the relevant regulatory and competition authorities. The transaction is expected to be completed in 2024.
