Société Générale: JV with AllianceBernstein on the cards
(CercleFinance.com) - Société Générale announced on Tuesday that it intends to create a joint venture with asset management specialist AllianceBernstein that would combine their cash and equity research businesses.
Under the terms of the agreement, the French bank would take a 51% stake in the joint venture, with an option to increase its stake to 100% after five years.
The new entity, which would be headquartered in London, would be managed as a long-term partnership between both shareholders under the name Bernstein.
The joint venture would combine Bernstein Research Services' equity research and execution business with Societe Generale's equity research and execution platform to form a "leading" global franchise.
This offering would be combined with Société Générale's existing equity capital markets, equity derivatives and prime services businesses.
Upon the deal's completion, which is expected by the end of 2023, Robert van Brugge, the current CEO of Bernstein Research Services, would become CEO of the new entity for an initial five-year term.
This project has been approved by both companies' Boards of Directors.
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