8 February – LAWFUEL – The Law News Network – The Milan office of Norton Rose, the international law firm, advised Société Générale Securities Services (SGSS) on its acquisition of the European Securities Services business of UniCredit Group for a total consideration of €548 million.
The Securities Services business, renamed 2S Banca SpA (formerly UniCredit Banca MedioCredito) is the 2nd largest Custodian in Italy with more than €455 billion in assets under custody and nearly €80bn in funds under administration. The business includes UniCredit’s activities of Custody, Clearing & Settlement, Depositary Bank, Fund Administration and Transfer Agency for clients in Italy, Luxemburg and Dublin. Following this transaction, SGSS will rank #3 Global Custodian in Europe with nearly €2,000 billion in assets under custody and approximately €380 billion of funds under administration.
SGSS and Unicredit Group are also negotiating a long term strategic services agreement for the provision by 2S Banca of the acquired service lines back to UniCredit and Pioneer, its Asset Management arm. As part of the transaction a total of 435 staff, of which 376 are based in Italy, will be transferred to SGSS.
Signing of the transaction is expected by the end of February 2006 and closing is expected within year-end. The transaction is subject to regulatory approval.
Nicolò Juvara, Corporate Finance Partner at Norton Rose (Milan), commented: “We are delighted to have advised Société Générale, a key client of the firm, on this strategic step for the Bank’s global securities business, and on what is a landmark transaction in Italy. I expect to see a growing number of these types of deals on this model featuring in the Italian market, which is still relatively under-developed in terms of major financial services outsourcing.”
Nicolò Juvara led the Norton Rose Italian team for Société Générale, assisted by Anna Oneto and David Ferri from Milan, Mike Rebeiro, Rick Kelly and Caroline Hughes from London, Jean-François Mercadier and Laure Givry from Paris, and Frank Herring from Frankfurt.
UniCredit were advised by Studio Grimaldi e Associati.