Brussels (Brussels Morning) – Indosuez Wealth Management finalizes acquisition of Belgium’s Degroof Petercam. Approved by banking authorities, this deal created a European wealth management leader. Crédit Agricole’s presence in Belgium strengthens, generating substantial synergies and enhancing client services across various financial sectors.
Indosuez Wealth Management, a subsidiary of Crédit Agricole, said on 4 June 2024 that it had finalised the acquisition of Belgium wealth manager Degroof Petercam, of which it became a bulk shareholder alongside CLdN Cobelfret, its historical shareholder.
The transaction, which has received the required approvals from the banking and competition authorities, would permit Degroof Petercam teams to join forces with Indosuez Wealth Management, building a European leader in wealth management, the statement said.
How does this acquisition enhance Crédit Agricole’s presence in Belgium?
It would also support Crédit Agricole’s presence in Belgium and will generate substantial synergies with its various business lines. “This acquisition is amongst the most significant transactions in the industry in the past 10 years in Europe. Indosuez Wealth Management, which has sustained its clients for more than 150 years, is now present in 16 territories, mainly in Europe, as well as in Asia Pacific and the Middle East. With approximately €200bn in client assets, nearly 1.6 billion euros net banking income and 4,500 employees, the new group will form a European leader in wealth management”, the statement stated.
What synergies will result from the Indosuez-Degroof Petercam merger?
Indosuez Wealth Management expressed clients would benefit from an improved value proposition leveraging on the complementary expertise of the two entities: Degroof Petercam’s advisory assistance to entrepreneurs, investment advice and budget offerings in particular ESG, and its fund servicing capabilities; the extensive scope of services of Indosuez Wealth Management including structured derivatives, private equity and real estate, as well as its financing capacity and international network.
This value proposition and service continuum contains Advisory, Financing, Investment Solutions, Fund servicing, Technology and Banking Solutions as well as access to Crédit Agricole Group’s international network, expertise and financing qualifications. The improved ESG offering enables clients to satisfy their growing demand across all asset classes, management approaches (advisory, discretionary) and financing.
A team of 4,500 workers now embodies the Group’s client, human and societal undertakings. This alliance will supply each employee with new development and career prospects within Crédit Agricole Group, the world’s 10th largest bank with various expertise and a presence in over 46 countries worldwide.
How will the acquisition reshape European wealth management?
Jacques Prost (pictured), chief executive officer of the Indosuez group stated: “I am delighted to welcome Degroof Petercam’s teams and extensive expertise to our Group today. This acquisition is a transformative and compelling project that reshapes our scope and sets a European leader in wealth management. It improves our value proposition with one of the most comprehensive offerings in the market for all our affluent private clients and families, entrepreneurs and professional investors. It permits us to generate significant synergies with the different movements of the Crédit Agricole Group. Now that this union has become a fact, all our teams across our territories will unite to pool our strengths, shape this new commodity and write a new chapter in our collective history.”
CA Indosuez now owns 65% of the capital of Bank Degroof Petercam alongside CLdN Cobelfret, which carries nearly 20% of the capital. CA Indosuez will shortly introduce a filing with the Belgian Financial Services and Markets Authority (FSMA) to establish a voluntary public takeover bid for the shares owned by the minority shareholders of Bank Degroof Petercam.
