Natexis Banques Populaires, the investment banking arm of Banque Populaire, a French mutual bank, is strengthening its equities business with the acquisition of New York-based broker Arnhold & S Bleichroeder in an all paper deal worth $105m (€107m).

As part of the transaction, which should be completed in the autumn, the US broker's existing shareholders will take a 2.6% stake in Natexis. Arnhold & S Bleichroeder will also be renamed Natexis Bleichroeder. The asset management business, Arnhold & S Bleichroeder Advisors, is not part of the deal and will continue to be operated through its parent, AS&B.