Societe Generale, Alliancebernstein to create cash equities and equity research JV
Societe Generale, a French financial services major, and AllianceBernstein, an investment management and research firm, are planning to create a joint venture (JV) to establish a cash equities and equity research business.
The new collaboration complements Societe Generale’s investment banking strategy to bring portfolio diversification, both from a geographical perspective and type of revenues.
Societe Generale expects to hold a 51% stake in the new entity with a call option to purchase the 49% interest owned by AllianceBernstein to achieve 100% ownership after five years.
The joint venture is expected to combine Bernstein Research Services’ global equity research and execution platform with Societe Generale’s capabilities in equity research and execution to create the new unit.
Combined with the integrated equity capital markets, equity derivatives and prime services platforms of Societe Generale, the joint venture is anticipated to provide a suite of cash equities and research services to the clients of both Societe Generale and Bernstein Research Services.
Slawomir Krupa — Societe Generale Global Banking and Investor Solutions head said: “This partnership with one of the most recognized firms in research and cash equities, combined with our global leadership in Equity Derivatives, would create an undisputed leader across the equity business for the benefit of our issuer and investor clients.”
The merged entities will offer investment insights into the American, Asia Pacific, and European equity markets to support global investor and issuer clients.
To be based in London, the business would operate as a long-term partnership under the Bernstein name.
Seth Bernstein — AllianceBernstein President and CEO said: “In Societe Generale, we have a strategic partner who is committed to strengthening and growing our world-class cash equities and research business.”
Subject to workers council consultation, regulators’ approval, and customary conditions, the joint venture deal between Societe Generale and Alliancebernstein is anticipated to close before the end of 2023.