BlackRock Inc. BLK and Citigroup C have selected French capital Paris over London as their new base for operations post-Brexit, as per Financial Times. This is the result of the promise of a cut in the tax rate by the French president, Emmanuel Macron.
BlackRock will offer alternate investment services throughout Europe and Asia from its office in Paris. The company currently manages €30 billion for its French clients and has 50 employees in Paris. With the license that BlackRock will receive in September, it will be able to offer products like hedge funds, real estate and commodity funds.
Notably, France, Belgium and Luxembourg will be handled by Mr. Henri Chabadel, who has been appointed as the chief investment officer of BlackRock and will be based in Paris. However, BlackRock’s London office will continue to serve as the main European office and none of the employees will be relocated from there.
On the other side, Citi currently has 160 employees in Paris and is going to add 100 more. The new employees will be divided among its Paris, Milan, Madrid, Dublin and Amsterdam offices. Moreover, it will employ 150 people for its Frankfurt office. Citi has appointed Gregoire Haemmerle to head its French corporate and investment banking unit, while to lead French M&A division, Pierre Drevillon has been hired.
Many other companies are making alternate arrangements to ensure business continuity post-Brexit. Paris, Frankfurt and Dublin seem to be the most preferred choices for the companies to make such transitions. Apart from BlackRock and Citi, many global banks, including Bank of America Corp. BAC, JPMorgan Chase & Co. JPM and HSBC Holdings are making similar moves.
Currently, BlackRock and Citi have a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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