Up to 700 jobs could be lost through the investment banking and asset management joint venture between France's Banque Populaire and La Caisse d'Epargne that will form Natixis, according to French trade unions.

The unions said the discussion on staff numbers for the new group will begin in the coming weeks. The combined group has been launching the country's second-largest flotation after setting a target of €6.6bn ($8.9bn) for a Paris listing this week. The bank is selling almost 283 million shares, equal to about 25% of its share capital. Banque Populaire, the owner of Natexis, and La Caisse d'Epargne, owner of Ixis, will each take a 34% stake in the combined business. The two banks signed the agreement to form Natixis this year and the €25bn merger went through three weeks ago. Two of France's biggest unions, Force Ouvrière and the Confédération Française Démocratique du Travail, which represent workers in the financial sector, said they had commissioned studies to look at the staffing overlap. They said the evaluation suggested up to 700 jobs were doubles, with most of the overlap in back-office administrative positions. French investment consultants said the companies have overlap in European equities and bond fund management, and redundancies for portfolio managers are likely. One consultant said the important part of the deal was working out how the fund manager could generate greater profits overseas. This might tip the balance in favour of Ixis, the bigger partner. Overlaps in investment banking are believed to be small. Ixis was known for its capital markets investment presence, while Natexis specialised in structured finance and loans for leveraged buyouts, where it has become one of France's biggest banks. Natixis could not be reached for comment.