The origins of the Degroof Petercam business go back about 150 years.

Indosuez Wealth Management, part of Crédit Agricole, has agreed to buy most of Belgium’s Degroof Petercam, the wealth and investment group.

The proposed acquisition is being carried out in partnership with the CLdN group, Degroof Petercam's core shareholder, which will retain a stake of around 20 per cent. The deal will allow Degroof Petercam to protect its domestic Belgian roots. CLdN has held a stake in the firm since 2011.

Degroof Petercam, an independent family group whose origins go back more than 150 years, is a diversified bank with client assets totalling €71 billion euros. 

The financial size of the transaction was not disclosed by Indosuez WM in its statement last Friday.

Degroof Petercam has positions in Belgium, Luxembourg and France in private banking, and internationally in asset management, investment banking and asset services.

“Thanks to this agreement, carried out in a spirit of shareholder continuity with a reference shareholder CLdN, the Indosuez Wealth Management group would gain access to a new client base in Belgium and internationally,” Indosuez WM said. “It would expand its expertise in financial management advice and fund offerings, particularly ESG funds, by capitalising on the expertise of the Degroof Petercam Asset Management (DPAM) company and in investment banking activities.”

“This proposed alliance will be an important step in our development in Europe, in line with our strategic plan, and will make Belgium our second domestic market,” Jacques Prost, chief executive of Indosuez Wealth Management, said.

Completion of the agreement between CA Indosuez Wealth (Europe) and Degroof Petercam, which is subject to approval from the relevant regulatory and competition authorities, is expected in 2024.

As part of this transaction, a long-term partnership agreement will be signed with CLdN, which will include liquidity mechanisms. Following the acquisition of a majority stake, a voluntary tender offer will be launched with Degroof Petercam's minority shareholders, with the intention for CA Indosuez Wealth (Europe) to acquire the remaining capital on the same terms as those for the acquisition of the majority stake.

The impact on Crédit Agricole SA's CET1 ratio would be around 30 basis points. This transaction would generate a return on investment in line with Crédit Agricole's policy.