Amundi SA is focused on buying management of Allianz SE’s asset supervisor Allianz International Traders because the French firm scouts for offers amid business consolidation, individuals accustomed to the matter mentioned.
Europe’s greatest asset supervisor has been holding on-and-off talks with the German insurance coverage big for a number of months a couple of deal for AGI, in response to the individuals, who requested to not be recognized as a result of the discussions are non-public. Attainable buildings might embody a full acquisition by Amundi or a mix with AGI that would go away Allianz with a large stake, they mentioned.
Allianz Global Investors had €555 billion ($584 billion) of property beneath administration on the finish of June, in response to its web site. Whereas talks have progressed at numerous occasions and there’s a prospect of an settlement earlier than annual leads to February, the complexity of any transaction means there’s no certainty they’ll result in a deal, they mentioned.
One doable construction that has been mentioned would contain forming a three way partnership initially, doubtlessly as a primary step towards higher integration down the road, a number of the individuals mentioned.
Amundi and Allianz are each working with advisers as they every discover completely different asset administration transactions, the individuals mentioned. Munich-based Allianz has additionally held preliminary discussions with Deutsche Financial institution AG a couple of potential mixture with the financial institution’s asset-management division DWS Group, the individuals mentioned.
Tie-Ups, Partnerships
Reuters and Bloomberg reported in October that Allianz is contemplating choices for its AGI unit. The early-stage issues might embody tie-ups and partnerships, an individual with information of the matter mentioned on the time.
Representatives for Amundi, Allianz, Deutsche Financial institution and DWS declined to remark. Shares of Amundi gained as a lot as 1.7% in early Thursday buying and selling in Paris, whereas Allianz rose 0.7% in Germany.
Dealmaking within the European asset administration business has been in full swing since BNP Paribas SA introduced plans earlier this yr to accumulate AXA SA’s asset administration arm. Assicurazioni Generali SpA is contemplating an asset administration tie-up with Natixis Funding Managers, individuals with information of the matter mentioned in November. Italy’s Banco BPM SpA additionally launched a takeover provide final month for asset administration agency Anima Holding SpA, which was disrupted when UniCredit SpA made a bid for Banco BPM.
Rising prices and strain on charges are prompting asset managers to hunt additional scale. Most of the greatest gamers in Europe are nonetheless owned by banks or insurers, and infrequently lack the size to compete with US fund homes and different funding corporations which have loved breakneck progress in recent times.
Doubling Down
Banks have been trying to double down on asset administration as they search new earnings streams at a time when rates of interest are falling. An accounting quirk often known as the Danish compromise can be serving to offers. A regulation relationship again to Denmark’s European Union presidency in 2012 permits banks to achieve a capital benefit when buying non-banks, reminiscent of insurers.
Amundi, managed by French lender Credit score Agricole SA, is the undisputed champion of the European asset administration business and oversees greater than €2 trillion. The agency is thought for its acquisition technique and has been concerned in additional than a dozen purchases over the previous decade, in response to knowledge compiled by Bloomberg.
AGI’s roots return to 1998, when Allianz determined to arrange a devoted asset administration enterprise. It began constructing it out by a collection of acquisitions, together with shopping for Nicholas-Applegate Capital Administration within the US and absorbing Dresdner Asset Administration in Europe. By 2011, the completely different items had been built-in to type AGI whereas PIMCO, which can be owned by Allianz, remained a standalone agency.
Curiosity in Scale
Deutsche Financial institution analysts wrote in a current analysis word that Allianz’s administration has at all times been clear that they’re focused on scale wherever they function. Berenberg analyst Michael Huttner mentioned in October his base case state of affairs is that Allianz might contemplate promoting a 51% stake in AGI to a long-term associate.
DWS, led by Stefan Hoops, is Germany’s largest asset supervisor with greater than €900 billion of property beneath administration. It has been scouting for potential acquisition targets and has additionally studied a deal for Viridium, the German life insurance coverage consolidator backed by Cinven, Bloomberg Information has reported. A full acquisition of Allianz International Traders might require the agency to boost capital, which would want approval from Deutsche Financial institution.
{Photograph}: An Allianz SE workplace in Berlin, Germany, on Wedesday, Nov. 9, 2022. Photograph credit score: Krisztian Bocsi/Bloomberg
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