The joint venture would
combine Bernstein Research Services' premier global
equity research and execution platform with Societe Generale's
equity research and execution capabilities to form a leading global
cash equities and equity research business
NASHVILLE, Tenn. and PARIS, Nov. 22,
2022 /PRNewswire/ -- AllianceBernstein (NYSE:
AB), a leading global investment management and research firm, and
Societe Generale (EURONEXT: GLE), a leading European bank,
announced today their plans to form a joint venture combining their
cash equities and equity research businesses.
For both Bernstein Research's and Societe Generale's clients,
including institutional investors and corporate and financial
institution issuers, this new joint venture would offer a
comprehensive global suite of world-class services across cash
equities and research, combined with Societe Generale's integrated
equity capital markets, equity derivatives and prime services
platforms. The joint venture would provide premier investment
insights into the American, European and Asia Pacific equity markets, in addition to
unparalleled liquidity access and leading global trading
technology. The merged entities would bring complementary strengths
and a shared vision of a leading full-service equity brokerage
business to support the needs of global investor and issuer
clients.
Bernstein Research and Societe Generale are committed to
fostering a strong cultural identity for the joint venture,
building on Bernstein Research's long-standing history of renowned
fundamental research and both organizations' innovative
quantitative approaches that have been core to their success. This
new joint venture aims to expand these strengths and bring in new
and unique perspectives, expertise and insights to better serve its
clients.
Societe Generale intends to take a 51% interest in the joint
venture, with an option to reach 100% ownership after five years
(1). The business would be run as a long-term
partnership under the Bernstein name, headquartered in London. Upon closing, Robert van Brugge, CEO of Bernstein Research,
would become CEO of the new entity for an initial term of five
years, and Stephane Loiseau, Head of
Societe Generale's cash equities business, would become Deputy
CEO.
"In Societe Generale, we have a strategic partner who is
committed to strengthening and growing our world-class cash
equities and research business," said Seth
Bernstein, AllianceBernstein's President and CEO.
"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 indisputable leader across the
equity business for the benefit of our issuer and investor
clients," added Slawomir Krupa, Head
of Global Banking and Investor Solutions, Societe Generale.
"This partnership gives us the opportunity to participate in the
high added value segments of the global equities business," said
Robert van Brugge. "And,
importantly, it would also allow us to preserve and expand our
firms' unique strengths, expertise, and cultures," added
Stephane Loiseau.
The proposed transaction has received the support of Societe
Generale's and AllianceBernstein's Boards of Directors. The closing
is expected to occur before the end of 2023. The transaction is
subject to workers council consultation, approval of regulators,
and customary closing conditions. AllianceBernstein and Societe
Generale will work closely together to ensure a smooth transition
for their staff, clients, and partners.
An equalization payment from Societe Generale to
AllianceBernstein would occur at the close of the
transaction.
As AllianceBernstein will own less than 50% of the joint
venture, AllianceBernstein anticipates deconsolidating Bernstein
Research from its financial statements following the close of the
transaction. The deconsolidation is expected to have a modestly
positive impact on AllianceBernstein's operating margin. The
planned joint venture is not expected to have an impact on
AllianceBernstein's asset management business or Bernstein Private
Wealth Management's business.
Ardea Partners served as financial advisor and Latham &
Watkins LLP served as legal counsel to AB.
- The joint venture would be 100% consolidated by Societe
Generale from an accounting and regulatory perspective. A call
option would be granted to Societe Generale to purchase the 49%
owned by AllianceBernstein and reciprocally, a put option would be
granted to AllianceBernstein to sell its 49% to Societe Generale as
of the 5th anniversary of the closing date, and for a
one-month period each successive year thereafter.
About AllianceBernstein
AllianceBernstein is a leading global investment management
firm that offers high-quality research and diversified investment
services to institutional investors, individuals, and private
wealth clients in major world markets. As of October 31, 2022, AllianceBernstein had
$627B in assets under management.
Additional information about AllianceBernstein may be found on
our website, www.alliancebernstein.com.
About Societe Generale
Societe Generale is one of the leading European financial
services groups. Based on a diversified and integrated banking
model, the Group combines financial strength and proven expertise
in innovation with a strategy of sustainable growth. Committed to
the positive transformations of the world's societies and
economies, Societe Generale and its teams seek to build, day after
day, together with its clients, a better and sustainable future
through responsible and innovative financial solutions.
Active in the real economy for over 150 years, with a solid
position in Europe and connected
to the rest of the world, Societe Generale has over 117,000 members
of staff in 66 countries and supports on a daily basis 25 million
individual clients, businesses and institutional investors around
the world by offering a wide range of advisory services and
tailored financial solutions. The Group is built on three
complementary core businesses: French Retail Banking; International
Retail Banking, Insurance & Financial Services; and Global
Banking & Investor Solutions.
Societe Generale is included in the principal socially
responsible investment indices: DJSI (Europe), FTSE4Good (Global and Europe), Bloomberg Gender-Equality Index,
Refinitiv Diversity and Inclusion Index, Euronext Vigeo
(Europe and Eurozone), STOXX
Global ESG Leaders indexes, and the MSCI Low Carbon Leaders Index
(World and Europe).
For more information, you can visit our website
www.societegenerale.com.
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SOURCE AllianceBernstein