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Soc Gen to buy Commerzbank’s EMC business


Societe  Generale  has  reached  an  agreement to acquire Commerzbank’s Equity  Markets  and  Commodities  business  (EMC), a  European  manufacturer,  distributor and  market  maker  of  structured  and  flow  products  as  well  as  asset  management  solutions.

The firm writes that with  a state   of   the   art   technology   platform,   it   benefits   from  significant   franchises   in  diversified   and complementary  segments. 
 
The  activities  in  the  scope  of  this  transaction  are  based  in  Frankfurt, London,  Hong  Kong,  Paris,  Luxembourg  and  Zurich.  The  transaction  excludes  the  Cash  Equity brokerage and commodities hedging businesses of Commerzbank.
 
Societe Generale writes that in  line  with  its  strategy  to  further  extend  its  Global  Banking  and  Investor  Solutions activities by  leveraging  on  its  strengths,  the  acquisition  of  these  activities  from  Commerzbank would reinforce the bank’s global leadership in derivatives and investment solutions across asset classes and would   contribute   to Lyxor’s  development  in  Europe  by  boosting  its  ETF  franchise  and complementing  its  active  management offering  with  a  set-up  and  a  product  range  well-suited  to answer the needs of German institutional clients in particular.
 
“Societe  Generale  and Commerzbank’sEMC franchises  are  complementary  and  present  an important  potential  of  synergies. This  acquisition  would  further  reinforce our  Global  Banking and  Investor  Solutions  activities  in  line  with  our  2016-2020  strategic  plan,” says  Séverin Cabannes,  Deputy  Chief  Executive  Officer.
 
“In addition, while complementing Lyxor’s ETF franchise, 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.  Upon  integration,  this  transaction would  bring  numerous  benefits  to  clients:  the  reach  and  geographical  footprint,  an  extended  cross-asset product set, the technology and expertise from two associated leading platforms”.
 

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