PARIS/FRANKFURT (Reuters) - A deal to transfer Deutsche Bank’s (DBKGn.DE) prime brokerage business to BNP Paribas (BNPP.PA) could see up to 1,000 staff move from the German lender to the French bank, BNP said on Monday.
The two banks said on Monday they had reached an agreement to smooth the transfer of the business, which serves hedge funds. The deal is a pillar of Deutsche’s restructuring.
Under the agreement, Deutsche would continue to operate the platform for global prime finance and electronic equities clients until the customers can be migrated to BNP, the banks said. A BNP spokeswoman said up to 1,000 staff could move.
Deutsche’s shares were down 3.9% midmorning in Frankfurt, while BNP was down 2.5% in Paris.
Deutsche Bank said in July it had struck a preliminary agreement with BNP covering the business, centered primarily in London and New York, as part of its 7.4 billion euro ($8.16 billion) overhaul.
Finalizing of the deal would mark a milestone in Deutsche’s restructuring, in which the bank is seeking to shed 18,000 employees and close some business lines.
BNP expects the deal to help it expand its dealings with institutional clients, such as alternative asset managers or quantitative funds, a BNP spokeswoman said.
Closing of the deal is expected at the end of this year.
Reporting by Maya Nikolaeva in Paris, Tom Sims in Frankfurt; Additional reporting by Riham Alkousaa, Patricia Uhlig and Hans Seidenstuecker; Editing by Tassilo Hummel and Thomas Escritt