Societe Generale Acquires Full Ownership of Newedge

Societe Generale has completed its acquisition of Credit Agricole’s 50% stake in the capital of Newedge, a derivatives brokerage, thus giving Societe Generale’s 100% ownership in Newedge.

As part of the deal, Societe Generale also sold Credit Agricole 5% of its stake in Amundi, the asset management subsidiary created by the two firms. After the sale, Societe Generale’s stake in Amundi sits at 20%.

“The finalization of the acquisition of Newedge is a significant strategic initiative which will allow us to position ourselves as key player in the rapidly growing sector of post-trade services for investors”, says Christophe Mianné, deputy head of Societe Generale’s Global Banking and Investor Solutions. “We will be able to offer our clients the best of both institutions: the financial guarantee and financing capacities of a leading bank, allied with Newedge’s leading market positions, in particular in prime brokerage and clearing services. We are thus strengthening our international presence, whilst positioning ourselves favorably in the new regulatory environment.”

Societe Generale says that these transactions are expected to result in a moderate positive impact on their earnings for the second quarter of 2014, and it will have a negative impact of approximately 10 basis points on their Basel III Core Tier One ratio for the quarter.