Fully financed from Amundi’s cash, the transaction amounts to 430 million euros. It should be completed in the third quarter of 2020.
Amundi is preparing to strengthen its positions on the Spanish market. The European asset management giant, until then relatively little present in the Iberian Peninsula, will acquire 100% of Banco Sabadell’s subsidiary, Sabadell Asset Management. Fully financed from Amundi’s cash, the transaction amounts to 430 million euros. It should be completed in the third quarter of 2020.
As it had done with UniCredit at the time of the Pioneer acquisition, Amundi also signed a ten-year distribution agreement with the Spanish bank. Banco Sabadell’s large network, with 1,900 branches, will enable it to place its in-house products with a new clientele of individuals. Enough to double the size of Amundi on the Spanish market. Which, with 600 billion euros managed in open funds, is the fourth European market for asset management. “We will soon be the fourth asset manager in Spain and the first non-Spanish,” said Amundi CEO Yves Perrier.
22 billion euros in assets
Admittedly, once the transaction is completed, Amundi’s outstandings will not jump by 20% as with Pioneer, but the Crédit Agricole subsidiary will still include an additional 22 billion euros (amount of assets under management of Sabadell AM at December 31, 2019). More than 70% of these assets are managed in the form of funds domiciled in Spain.
Amundi’s existing subsidiary in Spain, Amundi Iberia, will not merge with the new acquisition. “Sabadell Asset Management and Amundi Iberia will remain two separate entities and their investment funds and retirement products will remain independent,” the group explains in a press release.
Joint-venture avec Bank of China Wealth Management
Amundi is not content to expand into Europe. The asset management group is also focusing on Asia, where it already has nearly 300 billion euros in assets. In China, he is one of the first global asset managers to have obtained the necessary authorizations to launch a management joint venture with a Chinese company, with a majority stake therein. “Amundi has responded favorably to the opportunity offered by the new regulatory framework and to the proposal of Bank of China to become the majority shareholder of a new joint venture in asset management”, the group had commented in December.
The opening of the Chinese market whets the appetites of managers
The joint management company between BOC Wealth Management and Amundi should therefore see the light of day during the second half of 2020. It will coexist with the existing joint venture with Agricultural Bank of China.