Amundi’s acquisition of Bawag PSK’s Bawag PSK Invest, which will become a wholly owned asset management subsidiary of the Amundi Group, will boost the French asset manager’s distribution capabilities in the Austrian structured products market.
As part of the acquisition, Amundi will take control of any further issuance of structured products via Bawag PSK Invest. SRP data shows that Bawag PSK has marketed over 90 structured products in Austria’s retail market since 2006, of which 17 were issued via Bawag PSK Invest. The 13 Bawag PSK Invest live structures will be managed by Amundi from this point onwards.
In addition, Amundi and Bawag PSK entered into a long-term partnership whereby Bawag PSK will distribute Amundi’s funds and continue to distribute Bawag PSK Invest products via its physical and digital distribution networks. “This acquisition of Invest and the long-term partnership with Bawag PSK allow us to establish a strong local footprint in Austria and to access to one of the strongest franchises in retail distribution,” said Yves Perrier, chief executive officer of Amundi, in a joint statement. “This transaction highlights our recognised expertise as a partner of choice to provide savings solutions to the customers of banking networks.”
By executing this transaction Bawag PSK will simplify its banking operations and focus on its core franchises – retail banking and corporate lending – said Byron Haynes, CEO of Bawag PSK. “At the same time, by entering into a long-term distribution partnership with Amundi, we can continue to offer a broad range of fund products to our customers,” said Byron. “Overall, this is a win-win situation for all parties and in line with our strategy of transforming Bawag PSK.”
Bawag PSK has the largest centrally managed branch network with 500 branches across Austria. Amundi will continue to operate Invest in Austria. Bawag PSK Invest had a total of €5bn of assets under management (AUM) as of 31st December 2014, encompassing 78 retail and institutional products.
Bawag PSK Bank covers the Austrian structured products market offering bonds, investment certificates and deposits via its subsidiary Bawag PSK Invest, as well as funds and life insurance products via its subsidiary Bawag PSK Versicherung.
Deutsche Bank acted as financial adviser to Bawag PSK, and BPV Hügel served as the legal adviser. Morgan Stanley acted as financial adviser to Amundi, with Baker McKenzie the asset manager’s legal adviser.
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