The deal with Pioneer’s parent company UniCredit is intended to form a long term strategic partnership for the distribution of asset management products.
Pioneer Investments has the majority of its €222bn AUM on the retail side, which, together with Amundi’s existing assets, will create a €1,2761bn combined entity.
This will place Amundi at number one for AUM in France, a top three position in Italy and in Austria, and what it describes as “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, with a consequent significant increase in the number of staff in Milan.
Amundi will also benefit from having access to Pioneer’s US platform in terms of management and distribution.
As to how the two businesses will fit together from a product offering point of view, Amundi said Pioneer will reinforce its expertise 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.
Synergies of €180m
The transaction is expected to give full-year pre-tax synergies of approximately €180m, fully phased in within three years, including €150m of costs synergies by merging investment platforms, streamlining IT services and by rationalising administrative and back-office costs.
The transaction is expected to be completed in the first half of 2017 subject to regulatory and anti-trust approvals.
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 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.”
