Allianz, Amundi cease talks over combining asset administration companies, supply says

MUNICH (Reuters) – Allianz (ETR:ALVG) and Amundi have paused discussions about combining their asset administration companies right into a European funding large that may handle almost 2.8 trillion euros ($3 trillion) in belongings, a supply near Allianz stated.

Germany’s Allianz has been analyzing choices for its Allianz International Traders unit, together with a doable merger or partial sale of the division, Reuters reported in October. Asset supervisor Pimco, which Allianz additionally owns, was not a part of the discussions.

Allianz and Paris-based Amundi, Europe’s largest asset supervisor and owned by French financial institution Credit score Agricole (OTC:CRARY), have been holding talks a couple of tie-up for a while however have since stopped, the supply stated. It’s not clear whether or not talks might restart at a future stage.

A spokesperson for Amundi stated on Sunday it was not in discussions with Allianz and declined to remark additional.

AllianzGI, which oversees 560 billion euros of belongings in line with its web site, could possibly be valued at greater than 4 billion euros, together with debt, Reuters had reported in October.

The Monetary Occasions, citing individuals acquainted with the state of affairs, reported on Saturday {that a} key sticking level between the 2 sides had been the construction of any mixture and who would have management of an enlarged group.

Allianz’s concerns about what to do with AGI comply with BNP Paribas (OTC:BNPQY)’ determination to purchase AXA Funding Managers for greater than 5 billion euros, a transaction that bankers anticipated would spur extra dealmaking. Amundi additionally had been vying for the unit, Reuters reported.

Allianz’s finance chief Claire-Marie Coste-Lepoutre stated final month that the insurer favored its present set-up and didn’t purpose to cut back the contribution that its asset administration companies make to the group.

($1 = 0.9463 euros)