French banking giant Societe Generale has agreed to buy Commerzbank’s equity, markets and commodities (EMC) business for an undisclosed sum.
The transaction includes Commerzbank’s investment and flow products as well as its €13 billion global asset management businesses.
In total the businesses being sold generated more than €350 million of revenues in 2017.
Societe Generale said it expected the deal with Frankfurt-based Commerzbank would contribute to the development of its Lyxor exchange-traded fund franchise and complement its active management offering with a product range suited to the needs of German institutional clients in particular.
Deputy chief executive of Societe Generale Severin Cabannes said that the EMC businesses of both firms were “complementary and present an important potential of synergies”.
“This acquisition would be transformational for our activities in Germany as it would enable Societe Generale to reach a new scale in the leading eurozone economy,” he said.
The transfer is expected to get underway towards the end of 2018 and to complete in 2019.
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