La Banque Postale Asset Management entered into negotiations to acquire La Financiere de l'Echiquier, creating a €67 billion ($71.5 billion) money manager.
The transaction also broadens La Banque Postale Asset Management's investment presence to nine European countries. Further details were not immediately available.
"In an increased competitive environment, this transaction would be a major asset to strengthen our distribution channels and continue our growth in France and Europe," Emmanuelle Mourey, chairwoman of the management board of LBP AM, said in a joint news release Monday.
LFDE, which has €11 billion in assets under management, is a specialist active manager with private clients and independent financial advisers. LBP AM will acquire the firm from Primonial Group, which has owned the firm since 2019. The value of the deal was not disclosed.
LBP AM had €56 billion in assets under management at the end of 2022 across listed assets and private assets.
"The acquisition of La Financière de l'Échiquier would be a growth accelerator for LBP AM, which would strengthen its activities by integrating recognized teams. With this transaction, LBP AM would reach to the podium of multispecialist conviction managers in Europe and give itself the ability to address a wider range of clients, thanks to the complementarities of its sales forces," Philippe Heim, chairman of the executive board of La Banque Postale and vice chairman of the board of parent company Le Group La Poste, said in the release.
A final agreement by La Banque Postale AM and Primonial is subject to an approval from French financial services regulator Autorite des Marches Financiers and consultations with employees, which are expected to complete by the end of the third quarter.
Spokesmen could not be immediately reached to provide further details.