Following the announcement in March 2021, BNP Paribas is set to finalise the acquisition.
BNP Paribas has received all the necessary approvals and completed the acquisition of 100% of Exane, thus raising its stake from the 50% previously held during a 17-year partnership.
The acquisition enables BNP Paribas to ‘fully leverage Exane’s expertise in cash equities (execution and research) and derivatives, offering to institutional investors and corporates globally a full suite of services and solutions on equities’.
Exane will play a key role in BNP Paribas Global Markets’ equity plans - Olivier Osty
The French bank is seeking to ‘further strengthen and widen the range of cash equity and derivatives services’ it offers to institutional investors and corporates globally, and leverage the acquisition of Deutsche Bank’s Global Prime Finance and Electronic Equities business in 2019 to position the bank as a leading provider in global equities.
‘The acquisition of Exane, together with the transfer of Deutsche Bank’s global prime finance and electronic equities business to BNP Paribas, positions BNP Paribas as a European leader in global equities. It also supports CIB’s ambition in equity capital markets and M&A,’ said Yann Gérardin (pictured), head of corporate & institutional banking, and chief operating officer, BNP Paribas.
Exane is a small player in the public offering space and has just over 241 live products worth an estimated US$253m across markets with Italy (246 products/US$292m) and Ireland (nine products/US$27.9m). There are also four live products issued by Exane on SRP’s institutional database, one in the US market and another one in Monaco.
BNP Paribas has not unveiled the terms of the acquisition and how Exane will be integrated into the bank’s equities division as there is an overlapping of functions and management across prime services, global electronic trading, equity derivatives and equity capital markets.
‘Exane will play a key role in BNP Paribas Global Markets’ equity plans as we bring in cash equities, while continuing to strengthen our flow and derivatives offerings, and expanding the prime services business through the new integrated platform from Deutsche Bank’, said Olivier Osty (right), head of global markets, BNP Paribas.
The Exane acquisition is part of BNP Paribas’ plans to diversifying its equities franchise. BNP Paribas also made changes in its equity derivatives franchise with a reshuffle of the senior management team in early 2020 ‘to maintain momentum as well as simplify the set up across sales and trading’.
Most recently, BNP Paribas appointed Stephane Ritz to head of global markets Asia Pacific, and Brian McCappin as head of global markets institutional sales for the region.
The French bank reported a good level of activity in equity derivatives in the first quarter of 2021.
BNP Paribas issued 720 structured products worth an estimated US$3.8 billion on the primary market in the first half of 2021, according to SRP data.