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4/17, 8:04 AM (Source: TeleTrader)
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CA, Santander plan custody, asset servicing JV

Credit Agricole SA said on Wednesday that it signed a memorandum of understanding with Banco Santander SA to bundle up €3.34 trillion in assets under custody and another €1.83 trillion under administration. The French bank is set to control 69.5% in the joint entity, which will keep its CACEIS brand. The business will be combined with Santander Securities Services (S3) in Spain, Brazil, Mexico and Colombia, according to the announcement.

The Spanish counterpart is participating with 50.01% of its asset servicing business in Latin America, while the rest would be controlled together by Santander Group and CACEIS. The two lenders said they the joint venture would "deliver scale and stronger competitive positioning as it benefits from enhanced geographical presence, the full coverage of the value chain and an expanded offering."

The establishment of the firm, which they see by the end of the year, opens the way to "capture growth in high potential markets," namely Latin America and Asia, "and new opportunities," the press release adds. CA's subsidiary has €2.6 trillion under custody and €1.7 trillion under administration in Europe, North America and Asia.

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