BNP Paribas has completed its acquisition of AXA Investment Managers (AXA IM) and predicted revenue growth for the combined group of above five per cent by next year.
The €5.1bn (£4.4bn) acquisition was announced last summer, which the French banking group said would create a “leading European player” with €1.5tn of assets.
The deal allows the combined businesses to benefit from AXA IM Alternatives’ leading market position and track record in private assets, BNP Paribas said at the time.
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On announcing the completion of the deal today, BNP said that return on invested capital will be more than 14 per cent by year three (2028), and more than 20 per cent by year four (2029).
However, the deal faces regulatory issues relating to its capital ratio.
The acquisition was made through BNP’s insurance subsidiary Cardif, which the group hoped would benefit from the ‘Danish compromise’, whereby banks that own insurance companies are given more flexible treatment over capital requirements.
But BNP said that “discussions with supervisory authorities are still ongoing”, confirming that the deal will impact its CET1 ratio by around 35bp, compared with the 25bp initially anticipated.
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BNP said that a progress update will be provided at the time of the group’s third-quarter 2025 results.
It will then publish a ‘deep dive’ during the first quarter of 2026, focused on the group’s trajectory, including the takeover.
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