French asset manager Amundi has agreed to purchase 100% of Sabadell Asset Management, the asset management arm of Spanish lender Banco de Sabadell, for €430m ($476m).
The deal excludes Urquijo Gestion assets under management that will be moved to Banco Sabadell.
Amundi already operates in Spain via Amundi Iberia, which oversaw €21bn in assets as of September 2019.
The Spanish unit of Amundi and Sabadell Asset Management will operate as separate legal entities.
Amundi will use its existing liquidity for financing the acquisition, which awaits regulatory nod. Deal completion is anticipated in the third quarter of this year.
The takeover is expected to have a negative impact of around 10 and five basis points on the CET1 ratios of Crédit Agricole S.A. and Crédit Agricole Group, respectively.
In recent years, Amundi also snapped up Pioneer Investments as well as the Taiwan business of Mirae Asset Global Investments.
Amundi CEO Yves Perrier: “This partnership is in line with Amundi’s strategy to deploy in Europe its capabilities and resources to serve customers through retail networks.
“The acquisition of Sabadell Asset Management is for us a new step to reinforce significantly our position in Spain, a major savings market in Europe.”
The deal forms part of a 10-year strategic alliance between the two parties.
Under the partnership, Amundi offerings will be distributed across the Spanish lender’s 1,900 branches.
Sabadell chairman Josep Oliu said: “This is a strategic and commercial decision that allows us to leverage the product offering, experience and capabilities of the European leader in asset management.”
At the end of December 2019, Sabadell Asset Management managed €21.8bn in assets excluding Urquijo and third-party funds.