UniCredit is reducing the amount of client money it invests through Amundi and according to a Bloomberg report, aims to reduce the level to almost zero in less than two years. The move reflects the bank’s frustration with the fees it pays under an asset management deal that is coming up for renewal.
Amundi was created in 2010 through the merger of the asset management arms of Crédit Agricole and Société Générale. Crédit Agricole later acquired Société Générale’s stake in the company through an IPO.
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The Italian lender will incur breakup penalties as a result of the move but reportedly sees that as the lesser of two evils and preferable to the fees structure under the current deal.
Back in 2021, Amundi managed an estimated 80% of UniCredit’s investment assets. Since then, this figure has dropped to around 60% and is forecast to drop to approximately half by the end of the first quarter. Meantime, UniCredit has been unable to persuade Amundi to agree revised terms.
UniCredit/Amundi deal dates back to December 2016
The existing agreement between UniCredit and Amundi has been in place since a December 2016 deal between the firms. Specifically, UniCredit sold its Pioneer Investment unit to Amundi for around €3.54bn.
As part of the transaction, UniCredit and Amundi formed a strategic partnership for the distribution of asset management products underpinned by a 10-year distribution agreement.
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By GlobalDataAn extension of the agreement has been in doubt since the Italian bank’s ultimately unsuccessful effort to buy domestic rival Banco BPM.
Credit Agricole also has a sales partnership with Banco BPM. It increased its stake in the lender after UniCredit launched the bid last year.
