A consolidation of the sectorasset management it is still premature. This is confirmed by failure of negotiations of aggregation between Amundi and Allianzfollowing the offer presented last month by BNP Paribas for AXA’s investment division.
Over the weekend, Allianz and Amundi have interrupted the negotiations relating to a possible combination of businesses that would have led to the creation of a giant in the asset management sector with approximately 2,800 billion euros under management (3 trillion dollars). A hypothesis that had given wings to the shares of the French company, which on Friday had gained almost 4% on the stock market.
The negotiations have already failed
With the arrival of the Immaculate Conception weekend, the negotiations relating to one combination of the two businesses they have already failed. German Allianz, a source told Reuters, had examined the options to enhance the Allianz Global Investors division, which included a possible fusion or one partial sale of the division. The negotiations ended abruptly and it is unclear whether they will resume in the future. Pimco, the fund manager owned by Allianz, would not have taken part in the discussions.
The two sides had entertained discussions intermittently for more than a year – wrote the Financial Times – but only on Saturday morning did they enter into exclusive negotiations. A critical point of the negotiations would have been the structure of a bond, especially the division of the check of an enlarged entity. Some sources said talks could resume at a later date.
Who are the contractors
Amundi is a manager based in Paris, owned by Credit Agricole, born in 2010 following the merger of the asset management businesses of Credit Agricole and Societe Generale. At the moment it is the largest manager in Europe with assets under management for 2,200 billion euros.
Allianz Global Investors is the asset management division of the Allianz Insurance Group, which manages 560 billion euros of activity. According to experts, it could be worth more than 4 billion euros, including debt.
Difficult deals in asset management
The pause in negotiations confirms the difficulty to complete mergers and acquisitions on a large scale in the asset management industry and comes at a very good time for industry consolidation. The recent acquisition of Axa Investment Managers on the part of BNP Paribas for 5 billion euros, for which Amundi was also in the running, had set the sector in turmoil and stimulated bets on further deals. But an Allianz spokesperson said last month that the insurance company is satisfied with its current structure and is not considering selling its asset management division.
