{"id":59291,"date":"2016-12-13T02:39:00","date_gmt":"2016-12-13T01:39:00","guid":{"rendered":"http:\/\/beta.next-finance.net\/news\/amundi-reinforces-its-european-leadership-position-with-the-acquisition-of-pioneer-investments-from-unicredit\/"},"modified":"2016-12-13T02:39:00","modified_gmt":"2016-12-13T01:39:00","slug":"amundi-reinforces-its-european-leadership-position-with-the-acquisition-of-pioneer-investments-from-unicredit","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/news\/amundi-reinforces-its-european-leadership-position-with-the-acquisition-of-pioneer-investments-from-unicredit\/","title":{"rendered":"Amundi reinforces its European leadership position with the acquisition of Pioneer Investments from UniCredit"},"content":{"rendered":"<p>Pioneer Investments is a world class asset manager that has a highly complementary business and<br \/>\ngeographic profile with Amundi. With \u20ac2221<br \/>\nbillion of assets under management, a majority being retail<br \/>\nassets, Pioneer Investments has a unique franchise with a global and proven product expertise.<\/p>\n<p><strong>This transforming acquisition will strengthen significantly Amundi\u2019s industrial project and reinforce<br \/>\nits position as the European leader in asset management.<\/strong> It will create the 8th largest asset manager<br \/>\nglobally with \u20ac1,276[[As of 30 September 2016, excluding \u20ac4bn of assets under management in Poland]]\nbillion of assets under management, and will allow Amundi to:<\/p>\n<ul>\n<li> Reinforce its leadership in key European markets. The combined entity will be number 1 in<br \/>\nFrance, in a top 3 position in Italy and in Austria, and in a strong position in Germany. Italy will<br \/>\nbecome Amundi\u2019s second domestic market with \u20ac160bn under management, and Milan will become<br \/>\none of the Group\u2019s investment \u201chubs\u201d. The number of staff in Milan will therefore significantly<br \/>\nincrease.<\/li>\n<li> Benefit from a leading US platform in terms of management and distribution.<\/li>\n<li> Bolster its leadership in serving retail networks and improve its customer mix by increasing<br \/>\nthe proportion of higher-margin retail customers from 27% currently to 35% post<br \/>\ntransaction. The partnership with UniCredit, secured by a 10-year distribution agreement for Italy,<br \/>\nGermany and Austria, will allow Amundi to further strengthen its position as preferred provider of<br \/>\nsavings solutions to retail clients in Europe. In parallel, UniCredit networks will benefit from<br \/>\nAmundi\u2019s expertise of combining an industrial platform with tailor-made and local approaches, so as<br \/>\nto maximise value for both partners.<\/li>\n<li> Expand its institutional client base thanks to an increased presence in Europe as well as a<br \/>\nbroader product expertise.<\/li>\n<li> Enhance and diversify its global product offering. Pioneer will reinforce Amundi\u2019s know-how in<br \/>\nvarious asset classes such as European, US and Emerging Markets equities, multi-asset and US<br \/>\nfixed income. Pioneer and UniCredit retail and private banking clients will benefit from the<br \/>\nrecognized and custom-designed services of Amundi such as Smart Beta, ETF, real and alternative<br \/>\nassets, structured and guaranteed solutions, discretionary asset management, global fixed income,<br \/>\nglobal equities as well as money market funds.<\/li>\n<\/ul>\n<p><strong>The transaction is expected to create significant value for Amundi shareholders thanks to an<br \/>\nimportant synergy potential. The acquisition is consistent with the disciplined approach announced<br \/>\nby Amundi at the time of its IPO to deploy its excess capital.<\/strong><\/p>\n<ul>\n<li> The transaction should result in full-year pre-tax synergies of approximately c.\u20ac180 million,<br \/>\nfully phased within 3 years: c.\u20ac150 million of costs synergies are expected to be realised by<br \/>\nmerging investment platforms, streamlining IT services and by rationalizing administrative and<br \/>\nback-office costs; \u20ac30 million of revenue synergies are expected from potential cross selling and<br \/>\nother revenue optimization (brokerage\u2026)[[\u20ac40m of additional revenue synergies have also been identified and not integrated. ]]\n. Total integration costs are estimated at c.\u20ac190m pre-tax<br \/>\nand are expected to be phased-in in 2017 and 2018.<\/li>\n<li> The acquisition of Pioneer is expected to be accretive to Amundi Earnings Per Share by<br \/>\nc.30%[[EPS accretion calculated on 2017 EPS, assuming full-year effect of pre-tax synergies at approximately \u20ac180m are realised,<br \/>\nexcluding intangible assets amortization and integration costs.]]\n, taking into account the full-year effect of synergies and excluding restructuring costs. The<br \/>\nreturn on investment[[Excluding impact of intangible assets amortization and integration costs; including full-year effect of synergies. ]]\nof this acquisition within 3 years is in line with Amundi\u2019s 10% target.<\/li>\n<li> The price of the acquisition is \u20ac3,545 million. The net tangible equity of Pioneer Investments<br \/>\nat the closing of the transaction will equate c.\u20ac500m, which is c.\u20ac300m above regulatory<br \/>\nrequirements. The transaction will be financed by c.\u20ac1.5 billion of excess capital, a c.\u20ac1.4bn<br \/>\ncapital increase (rights issue), and c.\u20ac0.6bn of senior and subordinated debt. The rights issue<br \/>\nwill be launched in H1 2017 and will be underwritten by Cr\u00e9dit Agricole Group. Cr\u00e9dit Agricole<br \/>\nGroup will support the offering and shall keep a minimum pro forma ownership of 66.7%.<\/li>\n<\/ul>\n<p>The transaction, which has received the support of both Amundi\u2019s and UniCredit\u2019s Boards of Directors, is<br \/>\nsubject to customary closing conditions, regulatory and antitrust approvals. The transaction is expected to<br \/>\nclose in the first half of 2017.<\/p>\n<p>Commenting on the acquisition, Xavier Musca, Chairman of the Board of Directors of Amundi, said<br \/>\n<em>\u201cThis acquisition is fully in line with the selective acquisition strategy announced at the time of the IPO:<br \/>\nPioneer Investments will reinforce Amundi\u2019s product expertise, broaden its distribution channels and<br \/>\nnetworks, and generate significant synergies. It confirms Amundi\u2019s position as a clear European leader in<br \/>\nasset management, in terms of size and profitability.\u201d<\/em><\/p>\n<p>Yves Perrier, Chief Executive Officer of Amundi, added <em>\u201cThe acquisition of Pioneer Investments is a<br \/>\nmajor step to anchor Amundi as the European leader in asset management. This acquisition will reinforce<br \/>\nAmundi\u2019s industrial model and will benefit our clients whilst creating significant value for our shareholders.<br \/>\nPioneer Investments is a world class asset manager that has a highly complementary business and<br \/>\ngeographic profile. At Amundi we are all excited to welcome soon our new colleagues who will join us in a<br \/>\nleading asset management group fully dedicated to serve its retail and institutional clients.\u201d<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amundi announces that it has signed a binding agreement with UniCredit in order to acquire<br \/>\nPioneer Investments for an all-cash consideration of \u20ac3,545 million. As part of the transaction,<br \/>\nAmundi will form a long term strategic partnership with UniCredit for the distribution of asset<br \/>\nmanagement products.<\/p>\n","protected":false},"author":20,"featured_media":59289,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1470],"tags":[1655,1888,2007,1686],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/59291"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=59291"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/59291\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/59289"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=59291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=59291"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=59291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}