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Natixis and ODDO BHF are considering a long-term partnership aimed at creating a leading equity-market player in continental Europe
Natixis and ODDO BHF are planning a long-term partnership aimed at creating a major player on equity broking and primary equity markets in continental Europe. The combination of the two partners’ research and sales teams serving corporate clients and investors, the power of Natixis’ Corporate & Investment Banking business and ODDO BHF’s distribution capacity should enable them to achieve market-share gains.
More specifically, Natixis intends to strengthen its position as a major player on primary equity markets (capital increases and IPOs), while ODDO BHF wishes to invest in equity broking and research, with the goal of cementing its position in France and extending its coverage on German stocks so as to join the top 3 in Germany.
Natixis and ODDO BHF would like to offer investor and issuer clients a unique solution consistent with regulatory changes brought in by MiFID 2.
This partnership provides for:
- The transfer of Natixis’ equity broking and equity research activities in France to ODDO BHF
- The pooling of both players’ primary equity market activities in France within Natixis
- The acquisition by Natixis of a 5% equity interest in ODDO BHF
Natixis and ODDO BHF are seeking a long-term partnership geared to creating value for investors and issuers. This solution provides an innovative response that is consistent with regulatory changes and particularly the entry into force of MiFID 2.
ODDO BHF confirms its ambition of reinforcing its position in France (top broker on French stocks, source Extel 2017), and of ranking among the top three equity brokers in Germany, with these two markets representing 60% of the euro zone’s overall market capitalization.
The new team created by ODDO BHF would follow 600 stocks, including 220 in France and 130 in Germany, and thereby cover over 80% of the main benchmark indices in France and Germany. The Research team would also be strengthened on the sectors and stocks defined as priorities in Natixis strategic ambitions.
The two partners’ 515 existing institutional investor clients would have access to a single execution and distribution platform and to enhanced decision-making support. The new team would also increase its capacity to facilitate meetings between international investors and issuers.
Natixis would cement its position as a major player on the primary equity market and as a partner of choice offering strategic dialog to listed companies on their plans for equity and convertible issues.
Natixis would rank 3rd in terms of the number of primary market deals in France, with over 45 managed for French issuers over the last 3 years and 22 since the start of 2017.
The expertise of Natixis’ Equity Capital Markets (ECM) team and ODDO BHF’s reinforced research and placement capacity would provide listed companies and IPO candidates with one-stop access to a broad base of French, European and global institutional investors.
To ensure the success of its transactions, Natixis would be able to leverage the unique positioning of its equity primary and syndication teams, and their leadership in corporate broking (1st in terms of volume and number of deals on share buybacks on SBF120 companies in 2017 for the 3rd consecutive year). This proposed partnership would enable Natixis and ODDO BHF to become leaders on market liquidity contracts in France, with 110 liquidity contracts.
The project is subject to consultation with the employee representative bodies of the different companies concerned.
Press Contacts ODDO BHF
CITIGATE DGM
Yoann Besse / Laurence Duhamel Hugues Schmitt / Christian d’Oléon
+33 1 53 32 78 89 +33 1 40 70 11 89
+33 6 63 03 84 91 +33 6 08 49 89 07
yoann.besse@citigate.fr h.schmitt@dgm-conseil.fr
laurence.duhamel@citigate.fr chrisdo@dgm-conseil.fr
ODDO BHF is an independent Franco-German financial services group, with a history stretching back over 150 years. It was created from the alliance of a French family-owned business built up by five generations of stockbrokers and a German bank specialising in Mittelstand companies. With 2,300 employees (1,300 in Germany and 1,000 in France), and more than 100 billion euros in assets under management, ODDO BHF operates in three main businesses, based on significant investment in market expertise: private banking, asset management and corporate and investment banking. The Group has a specific ownership structure as 60% of its capital is held by the Oddo family and 30 % by employees. This “partnership” ethos guarantees the long-term involvement of its teams. At 31 December 2016, ODDO BHF generated net banking income of 577 million euros, net profit after tax of 136 million euros and at 31 December 2016, the Group had over 814 million euros of shareholders' equity.
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About Natixis
Natixis is a French multinational financial services firm specialized in asset & wealth management, corporate & investment banking, insurance and payments. A subsidiary of Groupe BPCE, the second-largest banking group in France through its two retail banking networks, Banque Populaire and Caisse d’Epargne, Natixis counts nearly 16,000 employees across 38 countries. Its clients include corporations, financial institutions, sovereign and supranational organizations, as well as the customers of Groupe BPCE’s networks. Listed on the Paris stock exchange, Natixis has a solid financial base with a CET1 capital under Basel 3(1) of €11.1 billion, a Basel 3 CET1 Ratio(1) of 11.5% and quality long-term ratings (Standard & Poor’s: A+ / Moody’s: A1 / Fitch Ratings: A+).
(1) Based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise - without phase-in. See note on methodology in the 2Q19 earnings material.
Figures as at 30 June 2019