Amundi has entered into exclusive negotiations with French investment bank Société Générale, over the acquisition of ETF business Lyxor.
The European asset manager is considering buying Lyxor for a total cash consideration of €825 million ($1.2 billion), or €755 million($1.1 billion) excluding excess capital.
The transaction could see Amundi become the European leader in ETFs, with a 14 per cent market share and combined assets under management of €142 billion ($220 billion).
Founded in 1998, Lyxor has €124 billion ($192.9 billion) in assets under management and is the third-largest player in Europe.
The transaction is expected to be completed by February 2022 at the latest, subject to approvals.
Yves Perrier, Amundi chief executive commented the acquisition will accelerate his company’s development and boost its expertise in ETFs and alternative asset management.
“This acquisition is fully in line with the Crédit Agricole group’s reinforcement strategy in the asset gathering business. It will also further reinforce the business relationships with our historical partner Société Générale,” Mr Perrier said.
“Finally, by creating in France the European leader in passive asset management, it will contribute to the post-Brexit positioning of the Paris financial centre”.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].