UniCredit has entered into an agreement with Societe Generale for the sale and outsourcing of the former Capitalia Group’s clearing, custody, depositary bank and fund administration businesses to Societe Generale Securities Services (SGSS).
The securities services business bought by SGSS represents assets under custody of 102 billion and assets under administration in Italy and in Luxembourg of respectively 22 billion and 5 billion.
As part of the transaction, SGSS will also become the exclusive provider in Italy of securities services to the relevant businesses in the former Capitalia Group. This falls within the framework of the existing outsourcing agreement between UniCredit and SGSS, which was established following the sale of 2S Banca to Societe Generale in 2006.
Following this latest acquisition, SGSS will have close to 2,720 billion in assets under custody and approximately 480 billion in assets under administration thus significantly consolidating its position among the three largest European global custodians.
With the sale of the former Capitalia securities services activities to SGSS, the UniCredit Group continues to focus on rationalising its back-office operations and optimising its costs, whilst at the same time enhancing customer service.
Completion of the transaction is expected by the end of March 2008.