Bawag PSK and Amundi have reached a final agreement to enter into a long-term strategic partnership in asset management. As part of the transaction, Amundi is acquiring Bawag PSK Invest.
The transaction has been approved by the supervisory boards of Bawag PSK and Amundi and remains subject to customary closing conditions and regulatory approvals.
Bawag PSK Invest, Bawag PSK’s wholly owned asset management subsidiary, had a total of €4.6bn of assets under management (AUM) as of June 30, 2014, encompassing 78 retail and institutional funds for Bawag PSK customers.
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 going forward.
“This acquisition is perfectly in line with our objective to accelerate our international development”, said Yves Perrier, chief executive officer at Amundi. “The long-term strategic distribution partnership agreement with Bawag PSK, one of the major banking players in Austria with 1.6m customers, highlights our recognised expertise as a partner of choice to provide savings solutions to the customers of banking networks.”
Amundi will continue to operate Bawag PSK Invest out of Austria and build on its existing franchise. In turn, Bawag PSK will distribute Amundi Asset Management’s fund products including the firm’s structured capital-protected range throughout Austria via its physical and digital multi-channel distribution capacities, including 500 branches across the country.
“Amundi is the right global business to carry on growing the franchise for the benefit of our customers and employees,” said said Byron Haynes, CEO of Bawag PSK. “This transaction is consistent with our strategy and enables us to partner with a world-class asset manager, continue offering the products that our customers want, and at the same time focus on what we know best - our core retail franchise.”
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.
See also:
Is Bawag facing restructuring?
Structured deposits find Austrian success