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.
Pioneer Investments is a world class asset manager that has a highly complementary business and geographic profile with Amundi. With €222 billion of assets under management1, a majority being retail assets, Pioneer Investments has a unique franchise with a global and proven product expertise.
This transforming 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 management1, 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.
- Benefit from a leading US platform in terms of management and distribution.
- Bolster its leadership in serving retail networks and improve its customer mix by increasing the weight of higher-margin retail customers from 27% currently to 35% post transaction. The partnership with UniCredit, secured by a 10-year distribution agreement for Italy, Germany and Austria, will allow Amundi to further strengthen its position of preferred provider of savings solutions to retail clients in Europe. In parallel, UniCredit networks will benefit from Amundi’s expertise of combining an industrial platform with tailor-made and local approaches, so as to maximise value for both partners.
- Expand its institutional client base thanks to an increased presence in Europe as well as a broader product expertise.
- Enhance and diversify its global product offering. Pioneer will reinforce Amundi’s know-how in various asset classes such as European, US and Emerging Markets equities, multi-asset and US fixed income. Pioneer and UniCredit retail and private banking clients will benefit from the recognized and custom-designed services of Amundi such as Smart Beta, ETF, real and alternative assets, structured and guaranteed solutions, discretionary asset management, global fixed income, global equities as well as money market funds.
The transaction, which has received the support of both the Amundi’s and UniCredit’s Boards of Directors, is subject to customary closing conditions, regulatory and antitrust approvals.
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."
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 be part of a leading asset management group fully dedicated to serve its retail and institutional clients.
1. As of 30 September 2016, excluding €4bn of assets under management in Poland.
