We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Societe Generale (SCGLY) to Buy Commerzbank's ECM Business
Read MoreHide Full Article
Societe Generale Group (SCGLY - Free Report) has agreed to acquire Commerzbank’s equity markets and commodities (EMC) business to boost its derivatives and asset management units. Financial details of the deal were not disclosed.
The transaction is subject to pre-clearance and approval by concerned regulatory authorities, which Societe Generale expects in the second half of 2018. Further, the deal incorporates transfer of EMC’s trading books, client franchise along with part of the IT infrastructure. The integration of activities and associated teams are expected to begin from 2018-end.
What the Deal Holds for Parties Involved
This acquisition is expected to bolster Societe Generale's hold in Germany through strengthening of derivatives and investment solutions. Also, the company expects its asset management unit — Lyxor — which has a strong presence in the field of exchange traded funds, to benefit significantly.
“Upon integration, this transaction would bring numerous benefits to clients: the reach and geographical footprint, an extended cross-asset product set, the technology and expertise from two associated leading platforms.” said Severin Cabannes, Deputy Chief Executive Officer at Societe Generale.
Moreover, the acquirer feels that both the EMC franchises are complementary to each other and possess the strength to deliver synergies. Upon integration, the deal is expected to have a positive impact on the Societe Generale’s return on tangible equity along with a slight impact on its core equity tier 1 ratio.
Commerzbank feels that the transaction is in line with its “Commerzbank 4.0” strategy, which aims at minimizing the company’s complexity and release trapped capital for investment in profitable areas. Further, the divesture of ECM business is likely to result in cost-savings of about €200 million by year-end 2020.
Shares of Societe Generale have lost 18.9% over the past six months compared with 14.3% decline for the industry it belongs to.
The stock currently carries a Zacks Rank #5 (Strong Sell).
The Zacks Consensus Estimate for Credicorp has been raised nearly 1% for the current year, in the last 60 days. The company’s share price has jumped 31.9% in the past year.
Bank of Montreal has witnessed 7.3% upward earnings estimate revision for 2018, in the last 60 days. Its share price has risen 8.8% in the past year.
Toronto Dominion’s shares have gained 17.8% in a year and its earnings estimates for 2018 have moved up 1.2% in the last 60 days.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Societe Generale (SCGLY) to Buy Commerzbank's ECM Business
Societe Generale Group (SCGLY - Free Report) has agreed to acquire Commerzbank’s equity markets and commodities (EMC) business to boost its derivatives and asset management units. Financial details of the deal were not disclosed.
The transaction is subject to pre-clearance and approval by concerned regulatory authorities, which Societe Generale expects in the second half of 2018. Further, the deal incorporates transfer of EMC’s trading books, client franchise along with part of the IT infrastructure. The integration of activities and associated teams are expected to begin from 2018-end.
What the Deal Holds for Parties Involved
This acquisition is expected to bolster Societe Generale's hold in Germany through strengthening of derivatives and investment solutions. Also, the company expects its asset management unit — Lyxor — which has a strong presence in the field of exchange traded funds, to benefit significantly.
“Upon integration, this transaction would bring numerous benefits to clients: the reach and geographical footprint, an extended cross-asset product set, the technology and expertise from two associated leading platforms.” said Severin Cabannes, Deputy Chief Executive Officer at Societe Generale.
Moreover, the acquirer feels that both the EMC franchises are complementary to each other and possess the strength to deliver synergies. Upon integration, the deal is expected to have a positive impact on the Societe Generale’s return on tangible equity along with a slight impact on its core equity tier 1 ratio.
Commerzbank feels that the transaction is in line with its “Commerzbank 4.0” strategy, which aims at minimizing the company’s complexity and release trapped capital for investment in profitable areas. Further, the divesture of ECM business is likely to result in cost-savings of about €200 million by year-end 2020.
Shares of Societe Generale have lost 18.9% over the past six months compared with 14.3% decline for the industry it belongs to.
The stock currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the same space are Credicorp Ltd. (BAP - Free Report) , Bank of Montreal (BMO - Free Report) and The Toronto Dominion Bank (TD - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Credicorp has been raised nearly 1% for the current year, in the last 60 days. The company’s share price has jumped 31.9% in the past year.
Bank of Montreal has witnessed 7.3% upward earnings estimate revision for 2018, in the last 60 days. Its share price has risen 8.8% in the past year.
Toronto Dominion’s shares have gained 17.8% in a year and its earnings estimates for 2018 have moved up 1.2% in the last 60 days.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>