Crédit Agricole and Santander have finalized a joint venture that will involve the combination of their custody and asset servicing businesses to create a global player with a presence in 15 jurisdictions across Europe, Asia and Latin America.
The merger of Credit Agricole’s CACEIS Group and Santander Securities Services (S3) means that 100 per cent of S3 Spain and 49.99 per cent of S3’s operations in Latin America (Brazil, Mexico and Colombia) have been incorporated into CACEIS.
As a result, Crédit Agricole and Santander hold 69.5 per cent and 30.5 per cent of CACEIS respectively.
The new entity has €3.9 trillion in assets under custody and €2.1 trillion in assets under administration.
The transaction has resulted in a capital gain of approximately €700 million for Santander in fiscal year 2019 and a slightly positive impact (3 basis points) on its core equity tier 1.
Jean-François Abadie has been confirmed as chief executive officer of CACEIS while Carlos Rodriguez de Robles, current general manager of S3, will be leading the Spanish and Latin American activities, reporting to Jean-François Abadie.
Uría Menéndez advised Banco Santander on the deal. The firm’s team was led by Antonio Herrera and Steve Hess.
Ana Botín (pictured), executive chairman of Santander said: “By combining the strengths of Crédit Agricole and Santander in custody and asset servicing we are creating a platform that can leverage our complimentary footprints and collective scale, with combined assets under custody of €3.9 trillion. Together we are stronger and can offer clients a better and truly global service proposition.”
Jean-François Abadie, CEO of CACEIS said: “The deal is a unique development opportunity for both companies as we share a common industry vision, and a close geographic and strategic fit. This activity merger extends CACEIS’ footprint to Spain and Latin America, where we are now a key player thanks to Santander's position and its in-depth local knowledge. We are very confident that the combined expertise of our teams and our shared vision will see this become a very successful venture. CACEIS was born of partnership and has a long history of successful integration deals. We see a bright future together.”
Carlos Rodríguez de Robles, general manager for S3, said: “We are delighted to be forming a partnership with CACEIS. By combining CACEIS and S3, we are becoming an even stronger force in European custody and asset servicing. With an enhanced business scope and geographical coverage, we are now in a position to better support our clients’ business development objectives. This combination is driven by the expected client benefits, and it brings them access to a full range of asset servicing products from a financially solid international group with a network of local entities. CACEIS and S3 are now focusing on the integration process and will ensure clients receive uninterrupted high quality services throughout the transition process.”