Commerzbank has agreed to sell its equity markets and commodities business (EMC) to Societe Generale in a deal which will significantly boost the French bank’s operations in the Eurozone.
The agreement includes Commerzbank’s investment products, flow products, and asset management businesses worldwide, including associated market making, sales and structuring capabilities.
According to Societe Generale, the activities in the scope of the transaction are based in Frankfurt, London, Hong Kong, Paris, Luxembourg and Zurich.
The transaction excludes the cash equity brokerage and commodities hedging businesses of Commerzbank.
Integration of activities and the associated teams are expected to take place gradually from the end of 2018. Societe Generale said it expects regulatory clearance in the second half of 2018.
“Societe Generale and Commerzbank’s EMC franchises are complementary and present an important potential of synergies. This acquisition would further reinforce our Global Banking and Investor Solutions activities in line with our 2016-2020 strategic plan,” said Séverin Cabannes, deputy chief executive officer at Societe Generale.
“In addition, while complementing Lyxor’s ETF franchise, this acquisition would be transformational for our activities in Germany as it would enable Societe Generale to reach a new scale in the leading Eurozone economy.
“Upon integration, this transaction would bring numerous benefits to clients: the reach and geographical footprint, an extended cross-asset product set, the technology and expertise from two associated leading platforms”.
Financial details of the transaction were not disclosed.