Deutsche Bank-owned wealth manager and French banking giant BNP Paribas confirm that their spectacular deal presented in June has been ditched.
It was a matter of assets worth €240 billion, writes German business paper Handelsblatt in its web issue. BNP Paribas signed with DWS in June 2018 to take over fund administration services such as depositary and custody for about 400 active funds, and the move was planned for 2019.
However, according to information that Handelsblatt has come across, the deal has now been officially cancelled, in what is interpreted as a sensitive failure for the French bank.
Both sides have confirmed the fact to the newspaper.
80 people will now stay
80 employees who should have moved with the business to BNP Paribas will now stay with DWS.
BNP Paribas is the leading actor in the German market for custody services, ahead of State Street. According to the Handelsblatt article, the planned business for DWS would have extended BNP Paribas lead in the area.
This would have made a difference, as the profit margins in the industry are tight and advantages of scale are important, it notes.