Groupe BPCE unit Natixis and ODDO BHF SCA, formerly Oddo et Cie, said they are considering a long-term partnership that will see Natixis take a 5% equity interest in ODDO BHF.
The partnership also includes the transfer of Natixis' equity broking and equity research activities in France to ODDO BHF, as well as the combination of both firms' equity capital markets activities in France within Natixis.
The firms said the partnership is "aimed at creating a major player on equity brokerage and equity capital markets in continental Europe" and is in response to regulatory changes, particularly the EU's revised Markets in Financial Instruments Directive, or MiFID II, which will take effect Jan. 3, 2018.
It will also help Natixis cement its position as a major player on primary equity markets, while enabling ODDO BHF to invest in equity brokerage and equity research and extend its coverage on German stocks, according to a Dec. 6 statement.
In light of the partnership, a new team set up by ODDO BHF would cover 600 stocks, including 220 in France and 130 in Germany, and thereby cover more than 80% of the main benchmark indexes in both countries.
In addition, the firms' 515 existing institutional investor clients will gain access to a single execution and distribution platform and to an enhanced decision-making support. The new ODDO BHF team will also increase its capacity to facilitate meetings between international investors and issuers.