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Pioneer Investments is a world class asset manager that has a highly complementary business and
geographic profile with Amundi. With €2221
billion of assets under management, 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[[As of 30 September 2016, excluding €4bn of assets under management in Poland]]
billion of assets under management, 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 proportion 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 as 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 is expected to create significant value for Amundi shareholders thanks to an
important synergy potential. The acquisition is consistent with the disciplined approach announced
by Amundi at the time of its IPO to deploy its excess capital.
- The transaction should result in full-year pre-tax synergies of approximately c.€180 million,
fully phased within 3 years: c.€150 million of costs synergies are expected to be realised by
merging investment platforms, streamlining IT services and by rationalizing administrative and
back-office costs; €30 million of revenue synergies are expected from potential cross selling and
other revenue optimization (brokerage…)[[€40m of additional revenue synergies have also been identified and not integrated. ]] . Total integration costs are estimated at c.€190m pre-tax
and are expected to be phased-in in 2017 and 2018. - The acquisition of Pioneer is expected to be accretive to Amundi Earnings Per Share by
c.30%[[EPS accretion calculated on 2017 EPS, assuming full-year effect of pre-tax synergies at approximately €180m are realised,
excluding intangible assets amortization and integration costs.]] , taking into account the full-year effect of synergies and excluding restructuring costs. The
return on investment[[Excluding impact of intangible assets amortization and integration costs; including full-year effect of synergies. ]] of this acquisition within 3 years is in line with Amundi’s 10% target. - The price of the acquisition is €3,545 million. The net tangible equity of Pioneer Investments
at the closing of the transaction will equate c.€500m, which is c.€300m above regulatory
requirements. The transaction will be financed by c.€1.5 billion of excess capital, a c.€1.4bn
capital increase (rights issue), and c.€0.6bn of senior and subordinated debt. The rights issue
will be launched in H1 2017 and will be underwritten by Crédit Agricole Group. Crédit Agricole
Group will support the offering and shall keep a minimum pro forma ownership of 66.7%.
The transaction, which has received the support of both 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.”
Yves Perrier, Chief Executive Officer 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. At Amundi we are all excited to welcome soon our new colleagues who will join us in a
leading asset management group fully dedicated to serve its retail and institutional clients.”
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