Ameriprise Financial Inc. and Amundi took steps earlier this month to strengthen its European capabilities.
Ameriprise Financial has signed a definitive agreement to acquire BMO Financial Group’s EMEA fund management business in a £ 615 million ($ 850 million) all-cash transaction, while Amundi announced that it is in exclusive negotiations with the parent company of Lyxor Asset Management to acquire the European listed company. funds specialist in an 825 million euro ($ 970 million) transaction.
The Ameriprise deal will add $ 124 billion in European assets under management and is expected to end in the fourth quarter, subject to regulatory approvals.
The acquisition will complement the core business and global growth strategy of Columbia Threadneedle Investments, owned by Ameriprise, by adding a substantial presence in the European institutional market, according to a press release from Ameriprise. Columbia Threadneedle’s AUM will grow to $ 671 billion and push the EMEA region AUM to 40% of its total assets.
Ameriprise and BMO have also entered into a separate agreement for US clients, giving certain BMO money management clients the option of switching to Columbia Threadneedle Investments. Terms of the deal with the United States were not disclosed, a separate press release from BMO said.
The deal allows BMO to focus on long-term profitability as a North American bank and wealth manager. chief, BMO Wealth Management, said in the BMO statement. “We will continue to invest in our diversified wealth management businesses in North America, including our Canadian asset management business, to provide an unparalleled experience for our clients as their needs evolve.
As part of this acquisition, BMO Wealth Management also established a strategic relationship with Ameriprise to give its North American wealth management clients access to the strategies of Columbia Threadneedle.
“The addition of BMO’s asset management business for the EMEA region is an exceptional growth opportunity,” Ted Truscott, CEO of Columbia Threadneedle, said in the Ameriprise statement. “The transaction advances our strategy and improves our geographic and asset class diversification, allowing us to serve more customers and meet more of their needs.”
It is expected that the majority of BMO’s more than 800 employees in the EMEA zone will join Columbia Threadneedle, including part of the senior team, a spokesperson for CTI said.
“For teams and capabilities that are new to Columbia Threadneedle, we don’t envision a major change and it will be largely business as usual as we welcome new teams to Columbia Threadneedle. Where we have established teams, we will seek to enhance our existing capabilities bringing together the talents and expertise of both organizations, ”she added.
Meanwhile, Amundi is looking to create a € 142 billion ETF manager, the company said in a press release on April 7. Lyxor is owned by Societe Generale SA and was founded in 1998.
Lyxor had € 124 billion in assets under management in December, € 77 billion in ETFs and € 47 billion in active assets under management. The transaction would accelerate Amundi’s development in the ETF market and also complement its active management offering – particularly in liquid alternative assets as well as advisory solutions, the statement said.
By strengthening the passive money management activity of Amundi, based in France, this decision “will also contribute to the post-Brexit positioning of the Parisian financial center,” said Yves Perrier, CEO of Amundi, in the press release. .
The transaction is also fully aligned with the strategy of Crédit Agricole SA group, owner of Amundi, which aims to strengthen the position of the financial services company in asset collection, the statement added.
The deal is expected to be finalized no later than February 2022, after various approvals. The two brands will continue to coexist until the deal is reached and nothing has been decided yet for the brands, an Amundi spokesperson said. Amundi does not anticipate any departure of key people at Lyxor – its management team actively participated in the process, alongside SocGen, and was involved in all key stages of the operation, the spokesperson added.
Amundi has a total of 1.7 trillion euros in assets under management.