Societe Generale to buy Commerzbank Equity Markets & Commodities
July 5, 2018

Societe Generale reports that it has agreed to buy Commerzbank's equity markets and commodities (EMC) business, based in Frankfurt, London, Hong Kong, Paris, Luxembourg and Zurich.

Societe Generale said it is acquiring a leading European manufacturer, distributor and market-maker of structured and flow products and asset management solutions. It said the target business boasts a state-of-the-art technology platform and benefits from significant franchises in diversified and complementary segments.

Societe Generale added that the move fits into its strategy of extending its global banking and investor solutions activities by leveraging on its strengths. The purchase will reinforce its global leadership in derivatives and investment solutions across asset classes, it said.

The deal will contribute to Lyxor's development in Europe by boosting its exchange-traded fund (ETF) franchise.

"Societe Generale and Commerzbank's EMC franchises are complementary and present an important potential of synergies," said SÚverin Cabannes, Deputy Chief Executive Officer.

Societe Generale said it expects to receive clearance in the second half of this year. Integration of activities and associated teams is expected to take place gradually from the end of 2018.

Not included in the deal are Commerzbank's equity capital markets (ECM), equity brokerage (equity trading and equity sales/brokerage) businesses, and the hedging business for commodity risks.

These will continue to be part of the German bank's corporate clients segment as part of its strategic client offering.

Commerzbank said that the disposal marks a further milestone in the execution of its Commerzbank 4.0 strategy, announced in 2016 to reduce cost and complexity and release capital for the core business.





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Societe Generale reports that it has agreed to buy Commerzbank's equity markets and commodities (EMC) business, based in Frankfurt, London, Hong Kong, Paris, Luxembourg and Zurich.

Societe Generale said it is acquiring a leading European manufacturer, distributor and market-maker of structured and flow products and asset management solutions. It said the target business boasts a state-of-the-art technology platform and benefits from significant franchises in diversified and complementary segments.

Societe Generale added that the move fits into its strategy of extending its global banking and investor solutions activities by leveraging on its strengths. The purchase will reinforce its global leadership in derivatives and investment solutions across asset classes, it said.

The deal will contribute to Lyxor's development in Europe by boosting its exchange-traded fund (ETF) franchise.

"Societe Generale and Commerzbank's EMC franchises are complementary and present an important potential of synergies," said SÚverin Cabannes, Deputy Chief Executive Officer.

Societe Generale said it expects to receive clearance in the second half of this year. Integration of activities and associated teams is expected to take place gradually from the end of 2018.

Not included in the deal are Commerzbank's equity capital markets (ECM), equity brokerage (equity trading and equity sales/brokerage) businesses, and the hedging business for commodity risks.

These will continue to be part of the German bank's corporate clients segment as part of its strategic client offering.

Commerzbank said that the disposal marks a further milestone in the execution of its Commerzbank 4.0 strategy, announced in 2016 to reduce cost and complexity and release capital for the core business.



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