Paris-based headquartered financial groups Natixis and Oddo BHF consider a long-term partnership to create a major player on equity brokerage and equity capital markets in continental Europe.
Both firms expect the deal to enable them gaining market shares. Natixis has set plans to strengthen its position as a major player on primary equity markets (capital increases and IPOs), while ODDO BHF seeks to invest in equity brokerage and equity research, targeting to reinforce its position in France and extend its coverage on German stocks in order to reach the top three equity broker in Germany.
The partnership, addressing regulatory changes and in particular the further implementation of Mifid II at the start of January 2018, includes:
- the transfer of Natixis’ equity broking and equity research activities in France to ODDO BHF;
- the reunion of both players’ equity capital markets activities in France within Natixis;
- the acquisition by Natixis of a 5% equity interest in ODDO BHF.
It is subject to the consultation of the employee representative bodies of both companies.
The new equity broking team established by ODDO BHF would cover 600 stocks, including 220 in France and 130 in Germany, hence covering over 80% of the main benchmark indices in France and Germany.
The institutional investors of the two companies will have access to a single execution and distribution platform. The new team would also increase its capacity to facilitate meetings between international investors and issuers.
In addition, Oddo BHF’s research team would be strengthened on the sectors and stocks defined as priorities in Natixis strategic ambitions.
Lastly the proposed partnership would enable Natixis and ODDO BHF to take the lead on market liquidity contracts in France, with 110 contracts.