The deal adds €5.9 billion ($6.82 billion) of assets under management, based on figures as of 30 June this year.

Indosuez Wealth Management, the global wealth management brand of Crédit Agricole Group, has agreed to by more than two-thirds (67.67 per cent) of Italian wealth management firm Banca Leonardo. Eventually, the group may own all of the Italian firm, it said. 

The deal adds €5.9 billion ($6.82 billion) of assets under management, based on figures as of 30 June this year.

The transaction is subject to the approval of the relevant supervisory authorities. It is expected to be finalised in the first half of 2018, the firm said in a statement today. There will be a modest impact on the CET1 ratio – a widely-used measure of banks’ buffer capital – of Crédit Agricole SA and of Crédit Agricole Group. The impact will be less than five basis points, it said. 

Other specific financial figures around the transaction weren’t disclosed. 

The acquisition is being agreed via Indosuez WM’s subsidiary, CA Indosuez Wealth (Europe). Agreement has been signed with current main shareholders GBH SA., Exor SA, Eurazeo SA, Swilux SA, and Torreal SA to buy the stake.

CA Indosuez Wealth (Europe) will offer the other shareholders of Banca Leonardo to purchase their shares at the same price and conditions, so that CA Indosuez Wealth (Europe) may ultimately own up to 100 per cent of Banca Leonardo.

“The acquisition is in line with our Shaping Indosuez 2020 strategic plan, which includes selective acquisitions in our key domestic markets in Europe. The wealth management sector in Italy, which is expected to grow at a rate of four per cent per annum, offers great opportunities for growth and innovation and we look forward to working with our new colleagues from Banca Leonardo to enhance our positioning and expand our business in Italy,” Paul de Leusse, chief executive of Indosuez Wealth Management, said. 

Giampiero Maioli, senior country officer for Crédit Agricole in Italy and CEO of Gruppo Bancario Crédit Agricole Italia, added added:  "With the acquisition of Pioneer by Amundi, the agreement to acquire CariCesena, CariRim and CR San Miniato, expected to be completed by year-end, as well as the further development in Italian Commercial Banking, Crédit Agricole Group has further demonstrated its commitment to Italy, its second largest market.”

The transaction is an example of the kind of merger and acquisition activity that continues in the world's wealth management arena. This publication recently spoke to MilleniumAssociates, a corporate advisory firm working in this space, about such trends.