Credit Agricole Acquires Full Control of Caceis Joint Venture from Santander
Deal News | Dec 20, 2024 | Zawya
Credit Agricole has agreed to purchase Santander's 30.5% stake in their joint custody and asset servicing entity, Caceis. This acquisition will grant Credit Agricole full control over the business, which was initially formed in April 2019 as part of a joint venture. The financial terms of the deal remain undisclosed and are subject to regulatory approvals, with completion anticipated by 2025. This transaction will not notably affect Santander’s earnings but is expected to enhance its capital ratio by 10 basis points. Conversely, Credit Agricole will experience a 30 basis point negative impact on its fully loaded core tier-1 capital ratio, aligning with its ROI and equity targets. The Latin American activities of the joint venture remain outside this transaction, maintaining joint control between Santander and Caceis. This strategic move follows Credit Agricole's acquisition of RBC's Investor Services earlier in 2023, further augmenting its asset servicing business, which provides stable, fee-based revenue largely independent of interest fluctuations.
Sectors
- Financial Services
- Asset Management
- Banking
Geography
- France – Credit Agricole, the acquiring bank, is based in France.
- Spain – Santander, the seller of the stake, is headquartered in Spain.
- Latin America – Though not part of the transaction, the joint venture has a relevant presence in Latin America.
Industry
- Financial Services – The article revolves around the acquisition of a custody and asset servicing entity, which falls under financial services.
- Asset Management – The activities of Caceis, including asset custody and servicing, are core to asset management.
- Banking – Includes activities of major banks such as Credit Agricole and Santander involved in strategic ventures and divestments.
Financials
- Not Disclosed – The financial value of the deal between Credit Agricole and Santander was not disclosed.
- 10 basis points – Boost to Santander's capital ratio as a result of the transaction.
- 30 basis points – Negative impact on Credit Agricole's fully loaded core tier-1 capital ratio due to the transaction.
- 12.5% – Santander's reported fully-loaded core tier-1 capital ratio at end of September.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Credit Agricole | Acquirer | Company | A major French bank acquiring full control of the joint venture Caceis. |
| Santander | Seller | Company | A leading Spanish bank selling its stake in the joint venture Caceis. |
| Caceis | Joint Venture | Company | Custody and asset servicing entity jointly managed by Credit Agricole and Santander. |
| Royal Bank of Canada | Other | Company | Credit Agricole previously acquired its Investor Services operations, expanding its asset servicing. |