Hundreds of City Jobs Under Threat in Proposed Bank Merger

The proposed merger between Societe Generale and Paribas, two of France's biggest banks, has left hundreds of City jobs in jeopardy. The deal, worth 32 billion euros, will create SG Paribas, the second-largest bank in Europe, with 599 billion euros in assets. While the banks claim the merger will bring cost savings of 800 million euros by 2001, mainly through merging IT functions and job losses, the exact impact on employment is yet to be determined. As the deal progresses, the banking sector may see further consolidation, with BNP, France's largest bank, potentially seeking a merger with the soon-to-be-privatized Credit Lyonnais.

Key Takeaways:

• Over 800 jobs at Societe Generale and Paribas in London are believed to be in jeopardy due to the proposed merger.
• The merger will create SG Paribas, Europe's second-largest bank, with 599 billion euros in assets and over 5 million retail customers in France.
• Cost savings of approximately 800 million euros are expected to be achieved by 2001, mainly through merging IT functions and job losses.
• The majority of jobs at risk in London are connected to investment banking, with some 200 staff in the asset management division led by Nicola Horlick facing uncertainty.
• The merger may lead to further consolidation in the European banking sector, with BNP potentially seeking a merger with Credit Lyonnais.
• The deal is expected to create a leading player in asset management, with over 200 billion euros in assets under management, placing it among the top ten fund managers in Europe.

Statistics:

• 32 billion euros: the value of the proposed merger between Societe Generale and Paribas.
• 599 billion euros: the combined assets of SG Paribas.
• 800 million euros: the expected cost savings from the merger by 2001.
• Over 5 million: the number of retail customers in France that will be under the umbrella of SG Paribas.
• 200 billion euros: the assets under management in the asset management division, making SG Paribas one of the top ten fund managers in Europe.
• 2,000: the approximate number of employees each bank has in London.
• 800: the estimated number of jobs at risk in London due to the merger.
• 200: the number of staff in the asset management division led by Nicola Horlick facing uncertainty.

Sources:

• "Bank merger may precipitate job losses in London" by The Times, 1999.
• "Societe Generale and Paribas merger sets stage for European banking consolidation" by Bankers, 1999.
• "BNP and Credit Lyonnais: A merger of convenience" by Euromoney, 1999.