Spain's Banco Santander and France's Crédit Agricole have announced their plans to merge their custody and asset servicing operations to create a business that could have around €3.34bn of assets under custody.
Santander Bank said in a joint statement the new business would have €1.83bn in assets under administration forming a truly global player with enhanced growth prospects.
Crédit Agricole will own 69.5% of the merged unit and Santander will hold the remaining 30.5%. The majority stake taken by the French bank will keep the brand name of its existing asset management arm Caceis.
The Latin American business of Santander Securities Service (S3) will be jointly controlled by Caceis and Santander.
Ana Botín, executive chairman of Santander, said:"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."
The deal comes amid other potential European bank mergers.
The merger of the two mid-sized Spanish lenders Unicaja and Liberbank could be coming to an end later this year following their meeting with the European Central Bank on Monday to present all the details of the potential tie-up in a bid to accelerate the operation.
Deutsche Bank and Commerzbank, two of Germany's largest lenders recently confirmed they were in merger talks, while Italy's UniCredit has also said it could be considering a deal with Commerzbank.