Amundi announces that it has signed a binding agreement with UniCredit in order to acquire Pioneer Investments for an all-cash consideration of €3,545 million. As part of the transaction, Amundi will form a long term strategic partnership with UniCredit for the distribution of asset management products.
With €222 billion of assets under management, a majority being retail assets, Pioneer Investments has a highly complementary business and geographic profile with Amundi, the firms declare in the press release.
Eighth Largest Asset Manager Globally
This acquisition will strengthen significantly Amundi’s industrial project and reinforce its position as the European leader in asset management. It will create the 8th largest asset manager globally with €1,276 billion of assets under management, and will allow Amundi to reinforce its leadership in key European markets. “The combined entity will be number 1 in France, in a top 3 position in Italy and in Austria, and in a strong position in Germany.”
Italy will become Amundi’s second domestic market with €160bn under management, and Milan will become one of the Group’s investment “hubs”. The number of staff in Milan will therefore significantly increase.
The price of the acquisition is €3,545 million. The transaction will be financed by c.€1.5 billion of excess capital, a c.€1.4bn capital increase (rights issue), and c.€0.6bn of senior and subordinated debt. The rights issue will be launched in H1 2017 and will be underwritten by Crédit Agricole Group.
The transaction is expected to close in the first half of 2017.
Commenting on the acquisition, Xavier Musca, Chairman of the Board of Directors of Amundi, said “This acquisition is fully in line with the selective acquisition strategy announced at the time of the IPO: Pioneer Investments will reinforce Amundi’s product expertise, broaden its distribution channels and networks, and generate significant synergies. It confirms Amundi’s position as a clear European leader in asset management, in terms of size and profitability.”
Yves Perrier, Chief Executive Officer of Amundi, added “The acquisition of Pioneer Investments is a major step to anchor Amundi as the European leader in asset management. This acquisition will reinforce Amundi’s industrial model and will benefit our clients whilst creating significant value for our shareholders. Pioneer Investments is a world class asset manager that has a highly complementary business and geographic profile. At Amundi we are all excited to welcome soon our new colleagues who will join us in a leading asset management group fully dedicated to serve its retail and institutional clients."