PARIS (Reuters) – Societe Generale (OTC:), France's third largest listed bank, and U.S. asset manager AllianceBernstein (NYSE:) officially launched their joint venture in the cash and equity research businesses , the two companies said Tuesday.
BECAUSE IT IS IMPORTANT
The move, initiated by SocGen CEO Slawomir Krupa shortly before taking the reins of the French bank, is part of the company's efforts to keep up with larger competitors such as BNP Paribas (OTC:) in France and the main Wall Street banks, Goldman Sachs and JP Morgan.
CONTEXT
The lender hopes the joint venture will help it gain more clients, especially in the initial public offering (IPO) space, and expand beyond its core markets in Europe.
It follows French rival BNP Paribas, which expanded its equity research house Exane in the United States after the euro zone's largest lender acquired it in 2021.
KEY QUOTES
“This joint venture illustrates Societe Generale's ability to develop innovative avenues to further expand our offering to clients as we increase our value proposition for the benefit of our investor and issuer clients, leverage synergies within our Group and increase our income sustainably,” Krupa said.
“Through this joint venture, Bernstein can continue to build a cash equities and research business that seeks to set the standard for delivering global investment expertise and an even stronger set of products and services to global clients,” the CEO said. by AllianceBernstein, Seth Bernstein.
THE DETAILS
The company, called Bernstein, employs more than 750 people and has two separate legal entities, one based in New York for the American region and the other in London for the European and Asian regions, they said. Robert van Brugge, who previously headed AllianceBernstein's research unit, is named CEO of Bernstein, while Stéphane Loiseau, who ran SocGen's cash equities business, becomes his deputy.
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