Crédit Agricole’s Indosuez Wealth Management Forges Partnership with Degroof Petercam

Crédit Agricole’s Indosuez Wealth Management Forges Partnership with Degroof Petercam

(IN BRIEF) Indosuez Wealth Management, a subsidiary of the Crédit Agricole Group, announces a significant agreement to acquire a majority stake in Degroof Petercam, a renowned wealth management leader in Belgium. The strategic acquisition, done in partnership with CLdN group, will see CLdN retaining a 20% stake, emphasizing a commitment to preserve the Belgian presence. The alliance aims to create a pan-European wealth management powerhouse, leveraging global growth opportunities and positioning itself as a sector consolidator in Europe. The transaction is expected to finalize in 2024, pending regulatory approvals, and will bolster the Crédit Agricole Group’s presence in Belgium and deliver enhanced financial services to clients.

(PRESS RELEASE) BRUSSELS/ LUXEMBOURG, 4-Aug-2023 — /EuropaWire/ — Credit Agricole Group (EPA: ACA), the world’s largest cooperative financial institution and France’s 2nd largest bank, announces that its subsidiary Indosuez Wealth Management, has signed a strategic agreement to acquire a majority stake in Degroof Petercam, a renowned leader in wealth management based in Belgium, with an impressive international presence and esteemed client base.

The proposed acquisition, conducted in partnership with CLdN group, a core shareholder of Degroof Petercam, will ensure CLdN retains a significant 20% stake, in line with a commitment to maintain its roots and domestic presence in Belgium, consistent with the partnership culture of the Crédit Agricole group.

Degroof Petercam: A Leading Investment House

Founded over 150 years ago, Degroof Petercam is an independent family group, boasting a diversified bank with client assets amounting to 71 billion euros. The institution holds a compelling market position in Belgium, Luxembourg, and France for private banking, and enjoys a strong international presence in asset management, investment banking, and asset services.

Embracing its raison d’être of fostering collective and responsible prosperity, the bank has demonstrated a strengthened focus on risk control and management procedures, particularly in compliance. Moreover, major investments have been made in its operational systems.

Creating a Pan-European Leader to Serve Clients

The combination of Degroof Petercam and the Indosuez Wealth Management group will establish a pan-European wealth management powerhouse, well-positioned to capitalize on global growth opportunities and emerge as a key consolidator in the European sector.

Clients stand to benefit from a broader range of high-value services, drawing upon the collective expertise and access to Crédit Agricole group’s extensive international network and financing capabilities. Similarly, Degroof Petercam’s talented employees will gain opportunities to be part of a diverse group present in more than 46 countries worldwide, further reinforcing shared values of social commitment, responsible investment, and diversity.

Unlocking New Client Opportunities

Through this agreement, executed with a commitment to shareholder continuity alongside the reference shareholder CLdN, Indosuez Wealth Management group will gain access to a new client base both within Belgium and on an international scale. The group will also extend its proficiency in financial management advice and fund offerings, particularly in ESG funds, capitalizing on the expertise of Degroof Petercam Asset Management (DPAM), and enriching investment banking activities.

Enabling Crédit Agricole Group’s Strong Presence in Belgium

The transaction will significantly strengthen the Crédit Agricole Group’s presence in Belgium, generating notable synergies with its various entities.

Jacques Prost, Chief Executive Officer of Indosuez Wealth Management, commented: “We are delighted to have reached this agreement with the shareholders of Degroof Petercam, a long-standing leader in wealth management. This proposed alliance will be an important step in our development in Europe, in line with our strategic plan, and will make Belgium our second domestic market. We look forward to working with the Degroof Petercam team. ”

Hugo Lasat, CEO of Degroof Petercam, also commented on the transaction: “I would like to pay tribute to our talented teams, whose efforts have helped to make our company one of the leaders in our respective activities with an international footprint. The proposed alliance with Indosuez Wealth Management will provide us with a stable shareholder, backed by a leading global player. It is also a solid strategic partner who will support the Degroof Petercam brand and who knows our activities inside out. This project will enable us to benefit from the strength of an organisation such as the Indosuez Group, while retaining our agility and entrepreneurial spirit in the interests of our clients. ”

Christian Cigrang, Chairman of the Board of Directors of the group CLdN commented: “CLdN, which became a shareholder of Degroof Petercam in 2011, brings its stake up to around 20%. This increase is to be seen in light of the signing of the agreement with Indosuez Wealth Management which, as a controlling shareholder, will offer new prospects for Degroof Petercam’s clients and staff members. CLdN is convinced that Indosuez – as part of Crédit Agricole group which boasts a long tradition of cooperation with local partners – endorses a corporate culture that respects the local identity and anchoring in the markets in which it operates. This evolution will strengthen Degroof Petercam’s resources and clout to further serve its clients and their specific needs.”

Next Steps

Indosuez Wealth Management Group looks forward to working closely with Degroof Petercam teams to ensure a smooth and seamless transaction process for the benefit of clients and employees.

The completion of the agreement between CA Indosuez Wealth (Europe) and Degroof Petercam is contingent upon approval from relevant regulatory and competition authorities, with the anticipated finalization of the transaction in 2024.

As part of this transaction, a long-term partnership agreement will be signed with CLdN, encompassing liquidity mechanisms. Following the acquisition of a majority stake, a Voluntary tender offer will be launched to acquire the remaining capital from Degroof Petercam’s minority shareholders, with CA Indosuez Wealth (Europe) intending to proceed on the same terms as the majority stake acquisition.

Impact on Crédit Agricole S.A.’s CET1 ratio is estimated at around – 30 basis points, in alignment with Crédit Agricole’s sound policies. The transaction is anticipated to yield a return on investment in accordance with the bank’s prudent financial approach.

Press Contacts – Indosuez Wealth Management
Charlotte de Chavagnac I charlotte.dechavagnac@ca-indosuez.com I +33 6 32 95 44 05
Isabelle Mandelli I isabelle.mandelli@ca-indosuez.lu I +352 691 362 265

Press Contacts – Degroof Petercam
Arnaud Denis | a.denis@degroorpetercam.com | + 32 478 99 82 37

About Indosuez Wealth Management
Indosuez Wealth Management is the global wealth management brand of Crédit Agricole Group, ranked 10th largest bank in the world based on balance sheet (The Banker 2022).

With more than 145 years of experience serving families and entrepreneurs around the world, Indosuez Wealth Management offers a tailored approach that enables our clients to protect and develop their wealth according to their aspirations. Its teams take a comprehensive view and provide expert advice and exceptional service, offering a wide range of services for the management of both personal and professional assets.

Recognised for its international dimension and human scale, Indosuez Wealth Management employs nearly 3,000 people in 10 locations around the world, in Europe (Belgium, France, Italy, Luxembourg, Monaco, Spain and Switzerland), Asia-Pacific (Hong Kong SAR, New Caledonia and Singapore) and the Middle East (United Arab Emirates).

With 130 billion euros in assets under management (as of 31/12/2022), Indosuez Wealth Management is one of the world’s leading wealth management companies.

www.ca-indosuez.com

About Degroof Petercam
Founded in 1871, Degroof Petercam is a Belgian-rooted reference investment house built on more than 150 years of integrated financial knowledge. We create responsible prosperity for all by opening doors to opportunities and accompanying our private, corporate and institutional clients with expertise.

Clients in over 20 countries trust us for our convictions and for our distinctive combination of services in private banking, asset management, investment banking (corporate finance and global markets) and asset services. Total clients assets (under management, under administration and in custody) amount to 71.1 billion euros (on 31.12.2022).

More than 1,500 experts are committed to our clients through offices in Belgium, Luxembourg, France, Switzerland, Spain, the Netherlands, Germany, Italy and Hong Kong.

Degroof Petercam

Trust. Knowledge.

www.degroofpetercam.com

About CLdN
The Cobelfret-CLdN consortium has its origins in Antwerp when approximately a century ago the Cigrang family came from Luxembourg to start a commodity trading activity. It has expanded its activities into Roll on / Roll off shipping lines and terminal operations on the North Sea, dry bulk shipping worldwide and a number of other business lines. Its main offices are in Belgium, Luxembourg, the Netherlands, the UK, Singapore and Switzerland.

www.cldn.com

SOURCE: Crédit Agricole Group