European banks are under pressure from regulators to boost their required capital. As a result, some of them are getting rid of non-core businesses such as asset management to raise much-needed funds.
French lender Societe Generale may give up its entire 20% stake in Europe’s leading asset manager Amundi, for cash.
SocGen and Credit Agricole are set to launch an initial public offering for Amundi before the end of this year, the two banks said in a joint statement.
Credit Agricole, which owns 80% of Amundi, will maintain a controlling stake as the asset manager plays a crucial role in its development strategy.
Here’s part of the statement:
“The purpose of the flotation is to underpin the continuing development of Amundi and provide liquidity to Société Générale, which could sell up to its entire stake, as set out in the shareholder pact that was agreed at the creation of Amundi.
“Amundi and Société Générale will continue their industrial partnership following the initial public offering. Amundi will remain the provider of reference for savings and investment solutions for Société Générale’s retail and insurance networks for a period of five years, renewable.”
Photo credit: Mohamed Yahya via Flickr