Amundi has announced it has signed a binding agreement with UniCredit to acquire its Pioneer investments business for the cash sum of €3.5 billion.
The merger is set to create the eighth largest asset manager in the world, with just under €1.3 trillion of assets under management.
Amundi said it will also reinforce its leadership in European markets and expand its institutional client base alongside broader expertise.
Xavier Musca, chairman of the board of directors of Amundi, explained the acquisition is fully in line with the selective acquisition strategy announced at the time of its initial public offering.
“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,” he said.
Yves Perrier, chief executive officer at Amundi, added the acquisition is a “major step to anchor Amundi as the European leader in asset management.”
The transaction is expected to close in the first half of 2017 and is subject to closing conditions and regulatory approval.