Crédit Agricole and Groupe Caisses d’Epargne have completed the merger of their securities services businesses announced on 17 December last year. Crédit Agricole-Caisse d’Epargne Investor Services (CACEIS) formally came into existence yesterday. The original deadline of 30 June for the completion of the merger was effectively met and, although some official authorizations have yet to be secured, all the agreements between Crédit Agricole and the Caisses d’Epargne have been signed.
CACEIS is own in equal parts by Crédit Agricole SA, the parent of Credit Agricole Investor Services, and the Caisse Nationale des Caisses d’Epargne (CNCE), the parent of IXIS Investor Services. The combined entities offer institutional customers depositary and custodian banking services through Crédit Agricole Investor Services Bank in Paris, Dublin and Luxembourg, Ixis Investor Services in Paris and Ixis Urquijo in Madrid; fund administration through the European Fastnet network created by Credit Agricole and Fortis, and Ixis Administration de Fonds in France; and corporate trust services through CA-IS Corporate Trust and Euro Emetteurs Finance.
“It represents a major step in the consolidation of the securities services business in Europe,” said Jean Laurent, Chief Executive Officer of the Crédit Agricole Group, and Charles Milhaud, Chairman of Groupe Caisse d’Epargne, in a joint statement. “The shared values and strategic alignment of our two groups enabled us to bring this ambitious project to a successful conclusion, within the prescribed deadline, and will allow our customers to enjoy a particularly competitive offering and guaranteed continuity of service.”
The combination of the two businesses creates a new financial institution with more than EUR300 million of Tier 1 shareholder equity, estimated net banking income in 2005 of about EUR450 million, and gross operating income in excess of EUR90 million. The total staff is around 2,300 employees, 40% of which are based outside France – mainly in Luxembourg, Madrid, Brussels, Dublin and Amsterdam.
CACEIS is the largest depositary bank for collective investment vehicles in France; the largest bank in terms of assets held with Euroclear France (formerly the French CSD, Sicovam); and among the largest European securities services organisations, with assets under custody in excess of EUR1,300 billion for institutional customers. CACEIS is also the largest fund administrator in France, with EUR640 billion in assets under administration, including the Fastnet network. Lastly it is one of the three leading corporate trust service providers in France, and a major European transfer agent, with EUR600 billion in assets being serviced.