SG and Calyon announce brokerage merger intentions

Paris-based banks Calyon and Société Générale confirmed they plan to merge their futures and options brokering subsidiaries, Calyon Financial and Fimat.

The two firms said the combined group would be a world leader in futures and options execution and clearing, providing access to over 70 exchanges. They also claimed it would be a major player in interdealer and prime-brokerage services.

A spokesman for Calyon named industry consolidation and synergies as catalysts for a deal. The proposed group would be controlled equally by both banks, although exact financial terms have not yet been detailed. Fimat employs 1,900 staff, Calyon Financial 900.

Calyon and Société Générale are now going through a process of due diligence relating to the plan, which would also be put to employee representatives.