State Street, a financial services group, is reportedly exploring the potential acquisition of Société Générale Securities Services, the securities and custody business of French mobility banking and leasing conglomerate Société Générale, according to early reports from Bloomberg. Sources close to the matter were cited in the Bloomberg article on Wednesday, April 17.
According to the news agency, State Street has started preliminary discussions regarding this potential acquisition, with Société Générale valuing the company at more than one billion euros.
Société Générale’s latest quarterly report reveals that SGSS experienced a notable drop in turnover of 47.6% in the last quarter of 2023, for a total of €144 million. The report also indicates a revenue contraction of 17.5% for 2023 compared to 2022, with stability (-0.7%) observed when excluding the impact of the valuation of various holdings.
Notably, assets in custody and assets under administration were reported at €4,931 billion and €579 billion respectively. First quarter 2024 results are expected on May 3, 2024.
According to Statec, the statistical office of the Grand Duchy, Société Générale employed 1,120 people on January 1, 2023, while State Street had 550 employees in Luxembourg.
A Société Générale representative told Delano that the group “never comments on market rumors.”
Editor’s Note, April 18, 2024, 3:16 p.m.: The article has been updated with more detail by a State Street representative who declined to comment.