BNP Paribas has signed an agreement to acquire the Asia Pacific equity execution business of Calyon, Crédit Agricole Group’s Corporate and Investment Bank. The transaction includes the corporate entity Credit Agricole Indosuez Securities Japan (CAISJ), and the assets of its related Hong Kong business.
After this cession, Calyon remains present in equity brokerage in Asia through CLSA network, the leading Asian broker.
This acquisition presents BNP Paribas with a unique opportunity to expand its existing equities business into the area of bespoke equity execution within the region. The bank intends to enlarge the already proven and established critical mass of CAISJ and its Hong Kong equivalent. With its long history and extensive understanding of the Asia Pacific markets, CAISJ and its Hong Kong counterpart have secured and manage an extensive international client base, supported by sophisticated technology and connectivity expertise across the region.
The acquired business includes a team of 30 people located in Tokyo and Hong Kong. It concentrates on non-research driven cash equity execution in Asia Pacific, including functions such as Direct Market Access (DMA), program and block trading, sales trading and commission recapture (correspondent brokerage). Its clients are primarily hedge funds, asset managers, brokers and proprietary trading desks of banks and boutiques, that are geographically located in Asia Pacific, the United States and Europe.
Commenting on the transaction, Yann Muzika, Head of Equities and Derivatives for BNP Paribas in Asia Pacific, said: “This acquisition is a demonstration of our commitment to better serve our clients in the region and globally to bring them a cutting-edge expertise in the field of Cash Equity execution. There are significant synergies, not only in terms of costs, but also within expected geographic and product cross-selling opportunities, especially with BNP Paribas Peregrine and the equity derivatives flow business, on which BNP Paribas has been making a significant push within the latest months.”
The current management team, headed by Pierre Rousseau, will keep on running the business that joins BNP Paribas Equities and Derivatives Flow and Liquidity unit, headed globally by Denis Frances.
Subject to approval from relevant regulatory bodies, the transaction is expected to be completed by July 2005.
About BNP Paribas
BNP Paribas (www.bnpparibas.com) is a European leader in banking and financial services, with a significant and growing presence in the United States and leading positions in Asia. BNP Paribas is the first bank in the Euro zone in terms of net income (2004). The group has one of the largest international banking networks, present in over than 85 countries with close to 100 000 employees, including 67,000 in Europe. BNP Paribas enjoys key positions in its three core businesses: Corporate and Investment Banking, Asset management & Services and Retail Banking.
Calyon (www.calyon.com) is Crédit Agricole’s new Corporate and Investment Banking entity that combines Crédit Agricole Indosuez’s activities with those of Crédit Lyonnais’ Corporate and Investment Banking division.
Backed by Crédit Agricole SA’s strong credit ratings and financial solidity, Calyon is positioned as a major player in financial markets and among Europe’s leading corporate and investment banks by revenues. Through its international network, Calyon is specialised in a broad range of capital markets, investment banking and financing activities. Its brokerage activities are carried out through three subsidiaries – Cheuvreux in Europe and CLSA in Asia for equity markets, and Calyon Financial for futures and options markets worldwide.