Societe Generale SA said Tuesday that it agreed to combine its cash-equities and equity-research businesses with that of U.S. asset manager AllianceBernstein Holding LP.
The French bank
said the joint venture with Bernstein Research Services would provide investment advice into the U.S., European and Asia-Pacific equity markets, alongside liquidity access and global-trading technology.
Societe Generale expects to take a 51% interest in the joint venture, with an option to reach 100% ownership after five years, with closure expected by the end of 2023, it said.
The business would be run as a long-term partnership under the Bernstein name, based in London, with Bernstein Research Services’ Chief Executive Robert van Brugge as head, Societe Generale said.
The deal would boost profitability, on a return-on-tangible-equity basis, of between 15 and 20 basis point from 2025, the Paris-based lender added.
“The merged entities would bring complementary strengths and a shared vision of a leading full-service equity brokerage business to support the needs of global investor and issuer clients,” the bank said.
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