(Adds details on acquisition and about EXOR NV)
France's Credit Agricole SA (ACA.FR) on Tuesday said that its wealth-management subsidiary has agreed to acquire Italy's Banca Leonardo SpA (BLEO.YY) for an undisclosed sum.
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The takeover by Indosuez Wealth Management (Europe) will add around 5.9 billion euros ($6.85 billion) to its existing assets under management, Credit Agricole said. Banca Leonardo's portfolio mostly comprises high-net-worth individuals, the French bank added.
The transaction is subject to approval from Italian antitrust authorities and Credit Agricole expects it to close in the first half of 2018.
Credit Agricole said that the acquisition's overall impact on the group's common equity Tier 1 ratio will be less than five basis points.
Indosuez will initially acquire around 68% of the Italian wealth-management company from major shareholders, and subsequently offer the same conditions to smaller shareholders to ultimately take over 100% of the company.
Banca Leonardo's major shareholders include GBH SpA, EXOR NV (EXO.MI), Eurazeo (RF.FR), Swilux SA and Torreal SA.
Italian investment company Exor said separately that it will sell its 16.5% sharehold in Banca Leonardo for an amount that is "in line with the carrying value of its investment."
The initial total amount will be based on Banca Leonardo's tangible net asset value, and then increased by a percentage of the value of its assets under management, Exor said.
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(END) Dow Jones Newswires
November 07, 2017 03:27 ET (08:27 GMT)