The combined group will have 50m retail clients worldwide and will have £510bn of assets under management.
Some changes have been made since the announcement of the preliminary agreement in January 2009.
The new entity (CAAM-SGAM) still includes 100 per cent of the activities of the CAAM group, to which Société Générale is bringing its fundamental investment activities, 20 per cent of TCW and its joint-venture in India.
However, on account of local regulatory constraints and agreements with partners, SGAM’s joint-ventures in China and Korea will not be included. Crédit Agricole SA will hold 75 per cent of the new business with the remaining 25 per cent held by Société Générale, taking into account this change in scope, the level of equity capital contributed by the two entities, and the latest operating framework.
Société Générale will appoint one third of the directors of the board of the new entity and, under group governance, will control the equivalent of one third of voting rights. Yves Perrier, the current CEO of CAAM, will become CEO of the new group.
The operation remains subject to approval with the transaction expected to close during the 4th quarter of this year.