Societe Generale SA said Tuesday that it agreed to combine its cash-equities and equity-research businesses with that of U.S. asset manager AllianceBernstein Holding LP.
The French bank
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said the joint venture with Bernstein Research Services would provide investment advice into the U.S., European and Asia-Pacific equity markets, alongside liquidity access and global-trading technology.
Societe Generale expects to take a 51% interest in the joint venture, with an option to reach 100% ownership after five years, with closure expected by the end of 2023, it said.
The business would be run as a long-term partnership under the Bernstein name, based in London, with Bernstein Research Services’ Chief Executive Robert van Brugge as head, Societe Generale said.
The deal would boost profitability, on a return-on-tangible-equity basis, of between 15 and 20 basis point from 2025, the Paris-based lender added.
“The merged entities would bring complementary strengths and a shared vision of a leading full-service equity brokerage business to support the needs of global investor and issuer clients,” the bank said.
Write to Ed Frankl at edward.frankl@dowjones.com
