Deutsche Bank is reportedly planning to transfer up to 800 staff to BNP Paribas as part of its earlier announced restructuring of business.
According to The Financial Times report, the deal will see BNP Paribas take control of German lender’s prime brokerage unit serving hedge funds.
The deal, if advances, will see the transfer of ‘tens of billions of euros of assets’ to the French firm, sources familiar with the matter told the publication.
The move follows a preliminary agreement signed by the two entities last month to ensure continuity of services to the Deutsche Bank’s clients.
A formal agreement may be signed in the following weeks. BNP Paribas is expected to pay a nominal cash consideration for the transaction, while Deutsche Bank will not pay any compensation to the transferred employees.
Most of the affected employees are located in London and New York. Some staff India-based employees are also expected to switch to BNP, as a part of the deal.
Another source told FT that BNP, however, will also get access to the technology utilised by Deutsche in electronic equities and prime brokerage platforms.
The deal is yet to be confirmed by the two parties.
Last month, Deutsche Bank announced a slew of measures as a part of its massive restructuring efforts. The overall plan includes 18,000 redundancies, exiting equities sales & trading business as well as scaling down its investment bank.