BNP Paribas and JPMorgan Chase announced today that they have reached a definitive agreement for BNP Paribas Espana S.A. to acquire the Spanish asset management and private banking businesses of the former Chase Manhattan Bank, now J.P. Morgan Bank S.A. As a result of this agreement, Chase’s Spanish asset management and pension fund companies, Chase Manhattan Ahorro and Chase Manhattan Prevision, will be integrated into BNP Paribas.
The transaction, which is still subject to regulatory approvals, represents the transfer of more than 750 million euros of assets under. It is expected to be completed as soon as possible. The terms of the agreement have not been disclosed.
The acquisition enables BNP Paribas to become a leading international institution in the Spanish high net worth market, with nearly 2.5 billion euros in assets under management and 17 private banking offices throughout Spain. The transaction will result in a significant broadening of the range of mutual and dedicated funds managed locally by BNP Paribas Asset Management. This acquisition is in line with BNP Paribas’ strategy to grow its private banking and asset management activities in the most attractive European domestic markets.
Vivien Levy-Garboua, Head of BNP Paribas’ Asset Management & Services division said : “This acquisition is part of our strategy of selective external growth. It enables us to consolidate our position as one of the international leaders in the Spanish asset management and private banking industry.” Ramiro Mato, Head of Territory for BNP Paribas in Spain added:
“In addition, as a complement to the Parvest mutual fund range, the combined local fund range will represent a compelling proposition in the Spanish asset management market, with an excellent mix of investment strategies and solid track records, boosting important synergies with other group activities, such as securities brokerage, clearing and custody”.
The transaction does not affect the activities of JPMorgan Private Bank or JPMorgan Fleming Asset Management in Spain, both integral parts of JPMorgan’s strategic business agenda for the Spanish market. “This sale is consistent with our global strategy of focusing on institutional asset management and services for ultra high net worth clients, said Emilio Saracho, JPMorgan’s senior country officer in Spain and Portugal.
“We are delighted at the prospect of sharing with Chase clients our know-how in the private banking industry. They will benefit from a broad range of products and services, specifically tailored to address the wealth management needs of high net worth individuals.” said Luis Hernandez, Head of BNP Paribas Private Bank in Spain.
“Our teams are excited by the opportunity to join BNP Paribas’ private banking and asset management operations. We will continue to serve our clients with quality products and innovative solutions, as we have been doing at Chase over the years,” said Alfonso Martinez Parras, Head of Private Banking at Chase, who will join the Management Committee of BNP Paribas Private Bank in Spain.
“BNP Paribas has long been considered a provider of choice for asset management and private banking services, and we will be working with BNP Paribas over the next several months to ensure continued service excellence and a seamless transition for the Chase clients,” said Emilio Saracho, JPMorgan’s senior country officer in Spain and Portugal.