By Adria Calatayud

BNP Paribas said its BNP Paribas Cardif insurance business and AXA signed a deal for the 5.1 billion-euro ($5.32 billion) purchase of AXA Investment Managers.

The French groups said in early August that they were in exclusive talks for a deal that would more than double the funds BNP Paribas oversees to create one of the largest money managers in Europe. The deal also includes a long-term partnership under which BNP Paribas would manage a large part of insurer AXA's assets.

The signing of the agreement came after both groups completed information-consultation procedures with employee-representative bodies, banking group BNP Paribas said Saturday. Completion of the transaction is expected in mid-2025, subject to regulatory approvals, it added.

"In anticipation of the closing process, all teams are now working to welcome AXA IM's employees and customers into the BNP Paribas Cardif Group" BNP Paribas Cardif Chairman Renaud Dumora said.

The combined business would oversee assets amounting to 1.5 trillion euros, making it one of the biggest European players in the sector.

With the deal, BNP Paribas aims to strengthen position in the management of long-term savings assets for insurers and pension funds, deploying part of the proceeds it generated from the 2021 sale of Bank of the West to Bank of Montreal for more than $16 billion.

Meanwhile, the sale means AXA exits the asset-management business and doubles down its focus on its core insurance operations.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

December 23, 2024 01:35 ET (06:35 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.