Amundi agrees deal for Pioneer Investments

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UniCredit will also receive a €315 million “extraordinary” dividend from Pioneer.

The deal will create the world’s eighth-largest fund manager, Amundi said in a December 12 statement, with €1.28 trillion under management.

The pair will form a long-term partnership, underpinned by a 10-year distribution agreement for Italy, Germany and Austria. UniCredit said it hopes to benefit from additional fee income from an expected increase in sales.

Amundi, which became Europe’s biggest listed asset manager with its November 2015 initial public offering, said the acquisition would reinforce its position in key markets in the region.

The French asset manager hopes to achieve about €150 million of cost synergies by merging investment platforms, streamlining IT services and by “rationalising” administrative and back-office costs, along with €30 million of revenue synergies from potential cross-selling among other means.

The synergies, are expected by Amundi to be fully phased within three years.

Amundi chairman Xavier Musca said: “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.”

UniCredit said in a separate statement that its capital position will be strengthened, with the deal to generate a consolidated net capital gain of €2.2 billion in 2017.

UniCredit’s financial advisers were JP Morgan, Morgan Stanley and UniCredit Corporate & Investment Banking. Amundi was advised by Goldman Sachs, Mediobanca and Crédit Agricole.

The transaction is expected to close in the first half of 2017.

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