France’s third-biggest listed bank Societe Generale and US investment management company Alliance Bernstein said they would form a joint venture (JV) concentrating on global cash equities and equity research.

The said venture comes as SocGen aspires to keep up with more profitable rivals such as BNP Paribas (OTC:BNPQY) in France and to lead Wall Street banks such as Goldman Sachs (NYSE:GS) and JP Morgan.

SocGen plans to take a 51 per cent interest in the JV, with an option to take 100 per cent ownership after five years. The French bank added that it would boost its profit from 2025 onwards.

Reportedly, the venture will be a long-term partnership under the Bernstein name and will be based in London. The said deal is expected to close by 2023.

CEO of Bernstein Research Services Robert van Brugge will become CEO of the new entity for an initial term of five years.