The European financial institutions, Crédit Agricole and Santander, have announced plans to combine their custody and asset servicing operations.
The French and Spanish companies signed a Memorandum of Understanding (MoU), which will see their combined business have assets under custody worth €3.3trn (US$3.8trn).
The business’s assets under administration have been valued at €1.8trn (US$2.1bn).
“We are delighted to enter into this partnership with Crédit Agricole,” stated Ana Botín, Executive Chairman of Santander.
“S3 and CACEIS are highly complementary businesses, and by working together we can create a custody and asset servicing platform that leverages our collective scale and global presence, and offers clients a comprehensive service that can support their ambitions and help them to prosper.”
Under the agreement, Crédit Agricole would have 69.5% ownership and Santander would have 30.5% hold on the firm.
“The contemplated combination of CACEIS and S3 is yet another illustration of Crédit Agricole’s continued focus on delivering a strong industrial partnership model with a view to creating outstanding platforms across our key business lines,” commented Philippe Brassac, CEO of Crédit Agricole.
“We are very proud to envisage this long-term collaboration with Santander in order to create a major player in custody and asset servicing with further growth prospects for the group.”