BNP Paribas is in exclusive negotiations to acquire AXA Investment Managers for €5.1bn, in a deal which would increase its assets under management to €1.5trn.
The two firms plan to enter a long-term partnership whereby BNP Paribas would provide investment management services to AXA.
Thomas Buberl, chief executive of AXA, said that although AXA IM is “a leading player, notably in alternatives”, the asset management industry is “rapidly consolidating and highly competitive”.
“By joining forces with BNP Paribas, AXA IM would become a global asset manager with a wider product offering and a mutual objective to further their leading position in responsible investing,” Buberl explained.
Selling the investment division will enable AXA to focus on its core insurance activities, the firm announced.