Caceis will strengthen its international asset servicing coverage subject to an agreement between Crédit Agricole, its French-based parent, and Santander.
The two banks have signed a memorandum of understanding to bring together Caceis, Crédit Agricole’s custody and asset servicing arm, and the activities of Santander Securities Services (S3) in Spain, Brazil, Mexico and Colombia.
The transaction, which is subject to regulatory approval, will give Caceis control over all of S3’s business in Spain and 49.99% of its operations in Latin America.
As a result, Crédit Agricole will control 69.5% of equity in Caceis and the remaining 30.5% will be owned by Madrid-based Santander.
S3’s Latin American operations will be controlled jointly by Caceis and Santander.
By bringing together their asset servicing capability, the enlarged group is expected to offer greater exposure to growth opportunities in “high potential markets” in Latin America and Asia, along with better coverage along the post-trade value chain.
Crédit Agricole said that this agreement provides illustration of its focus on delivering “a strong industrial partnership model” with a view to creating high-quality platforms across its key business lines.
Jean-Francois Abadie, currently Caceis’ chief executive, will take the helm of the combined entity, which will have combined assets under custody of €3,343bn and assets under administration of €1,833bn. Carlos Rodriguez de Robles, S3’s General Manager, will take leadership responsibilities for its Spanish and Latin American business activities.
Abadie highlighted the strong fit between Caceis and S3 from a geographic, client and service coverage perspective. “Our two organisations have similar cultural and industry approaches, bringing significant value for stakeholders”, he said.
Rodriguez de Robles said that the two entities bring together a strong service portfolio, product knowledge and physical presence across the local markets covered by the agreement.
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