PARIS/FRANKFURT (Reuters) - Societe Generale <SOGN.PA> has agreed to buy Commerzbank's <CBKG.DE> equity markets and commodities business (EMC), strengthening its presence in areas such as derivatives while Commerzbank itself looks to sell off non-core assets.
The two banks did not disclose a price for the transaction, although Commerzbank said on Tuesday that its EMC division had 2017 gross revenues of 381 million euros (337.56 million pounds).
"Societe Generale and Commerzbank’s EMC franchises are complementary and present an important potential of synergies. This acquisition would further reinforce our Global Banking and Investor Solutions activities in line with our 2016-2020 strategic plan" Séverin Cabannes, SocGen's deputy chief executive officer, said.
"In addition, while complementing Lyxor’s ETF franchise, this acquisition would be transformational for our activities in Germany as it would enable Societe Generale to reach a new scale in the leading Eurozone economy," Cabannes added.
Commerzbank Chief Executive Martin Zielke said the sale of the unit was in line with the German bank's "4.0 strategy", which entails divesting non-core assets to raise capital for the company's core banking franchise.
(Reporting by Sudip Kar-Gupta; Editing by Maria Sheahan)