Credit Agricole and Santander to combine custody and asset servicing arms
Credit Agricole will own 69.5 percent of the merged unit, which will keep the brand name of Agricole's existing asset management arm - Caceis. Low profitability among European banks has sparked calls from officials at the European Central Bank and investors for cross-border consolidation, but regulatory issues and political opposition to foreign takeovers have stymied deals so far. Santander and Credit Agricole's combined custody operations would make them one of the largest European players behind BNP Paribas, HSBC and SocGen, while also creating a stronger competitor to U.S. leaders such as State Street. "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," said Santander Chairman Ana Botin.
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