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Pioneer Investments, Santander to form one of EU’s largest asset managers
Pioneer Investments and Santander Asset Management (SAM) will merge to form a €400 billion ($431.7 billion) global asset manager
The Asset 24 Apr 2015

Pioneer Investments and Santander Asset Management (SAM) will merge to form a €400 billion ($431.7 billion) global asset manager.

 
The new company, which will be called Pioneer Investments, will be among Europe’s 10 largest money managers by assets and rank among the top 35 firms globally,  says a news release from the companies.
 
Their union follows an exclusive agreement between Pioneer parent firm, UniCredit and SAM’s parent, Banco Santander. The deal involved affiliates of Warburg Pincus and General Atlantic.
 
Juan Alcaraz, current chief executive officer of SAM, will be the global chief executive officer, and Giordano Lombardo, current chief executive and group chief investment officer of Pioneer Investments, will be the global CIO of the new company.
 
The partnership between the two firms will provide for substantially enhanced economies of scale, a key advantage in the asset management industry, while also expanding the business's diversification with respect to investment strategies, distribution channels and region. The combined firm will have robust market share based on deep client relationships in a wide range of markets including both growing and established regions, covering institutional, wholesale third party, and proprietary channels.
 
Pioneer and SAM bring largely complementary platforms, investment capabilities, and client relationships, resulting in a more complete range of solutions and services to the benefit of all clients. Through this strategic transaction, the combined firm will be committed to maintaining the continuity and repeatability of its investment processes that have served clients well over multiple market cycles.
 
Furthermore, it will offer an expansive global distribution footprint, with a presence in over 30 countries and exposure to both growing and well-established regions such as Latin America, North America, Asia, as well as a leading position in Europe.
 
The preliminary agreement will lead to the establishment of a holding company, with the name Pioneer Investments, which will control Pioneer’s US operations along with the combination of Pioneer and SAM's operations outside the US. UniCredit and the private equity firms will each own 50% of the holding company. The holding firm, in turn will hold 100% of Pioneer US, and 66.7% of the combination of Pioneer and SAM's operations outside the US. Santander will directly own the remaining 33.3% stake. The combined firm will continue to operate as one global entity, led by a single global management team, focusing on meeting the needs of its clients worldwide.
 
The agreement values Pioneer investments at €2.75 billion and SAM at €2.60 billion. The transaction is estimated to enhance UniCredit’s capital position by approximately 25 basis points.

 

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