By Donato Paolo Mancini 
 

Credit Agricole SA (ACA.FR) and Banco Santander SA (SAN.MC) have signed a memorandum of understanding to create a new entity focused on custody and asset-servicing operations with a remit over a total of more than 5 billion euros ($5.7 billion), the lenders said Wednesday.

The new entity, names Caceis, would see Credit Agricole and Santander hold 69.5% and 30.5%, respectively, in a combination of their operations. It would combine Santander Securities Services, or S3, in Spain and Latin America, with Caceis.

The combined entity would hold EUR3.34 billion in assets under custody and EUR1.83 billion in assets under administration.

The transaction, which requires customary approvals and the sign-off from the relevant works councils, is expected to take place by end of 2019.

"It is anticipated that the impact on both capital and on earnings per share will not be material for both parties," the lenders said.

Write to Donato Paolo Mancini at donatopaolo.mancini@dowjones.com; @donatopmancini

(END) Dow Jones Newswires

April 17, 2019 02:01 ET (06:01 GMT)