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PARIS (Reuters) -Amundi, Europe’s largest asset manager, said on Tuesday it had agreed to sell its U.S. business to Victory Capital in exchange for a 26% stake in the U.S. company.
The move, aimed at boosting Amundi’s access to the world’s biggest financial market, will allow the French asset manager’s clients to access a larger pool of products.
In exchange, Victory Capital will be able to serve a greater number of clients inside and outside its home country, as the deal involves 15-year reciprocal distribution agreements.
Amundi, which did not disclose the implied value of Victory Capital’s equity generated from the transaction, said the deal involved no cash payment.
As a new reference shareholder of Victory Capital, Amundi will have representatives on the board of the U.S. asset manager, it said.
“The proposed transaction with Victory Capital is a unique opportunity to strengthen our presence in the U.S., while becoming a strategic shareholder in a reputable U.S.-based asset management firm with an excellent track record of growth,” said Amundi CEO Valerie Baudson.
Victory Capital, whose history traces back to 1894, has a market capitalisation of around $2.7 billion and has $170 billion in total assets under management. Amundi, which is controlled by French bank Credit Agricole (OTC:CRARY) SA, has more than $2 trillion of assets under management.
The reciprocal distribution agreements between the two companies will allow Amundi to offer Victory Capital’s products outside the United States, while Victory Capital will offer Amundi’s non-U.S. made products in America.
