French smartcard manufacturers Axalto and Gemplus are to combine their businesses in a €163m ($191.9m) merger of equals. The companies were advised by non-domestic banks, leaving out Société Générale, which helped arrange Axalto's float last year.

Axalto is being advised by Deutsche Bank on the transaction, which will create a world leader in digital security with €1.8bn ($2.1bn) of revenues, while rival Gemplus has retained Morgan Stanley.