Crédit Agricole increases stake in Amundi
Crédit Agricole is seeking a postive impact on its Core Tier One ratio by taking an increased share in Amundi from co-owner Société Générale, while disposing of its half of the jointly owned brokerage business Newedge Group.
The sale of the stake in Newedge will give CA some €275m, while the acquisition of the additional 5% stake in Amundi will cost some €337.5m.
This will take CA’s stake in the asset manager to 80%, leaving SG with a 20% share.
In a statement, CA said: “This sale would not have any impact on the current governance structure of the company. Amundi would remain the leading provider of savings solutions across Societe Generale’s retail banking networks.”
CA said its objective was to grow Amundi, which already claims to be Europe’s biggest asset manager with some €750bn of AUM. The ownership change has been announced together with further information about Amundi’s business performance, contained within CA’s latest quarterly results.
Over the period to the end of September 2013, the bank notes that Amundi completed its acquisition of US manager Smith Breeden, and its €4.7bn of AUM, thus boosting Amundi’s overall fixed income range.
In ETFs, Amundi claims a fourth position in Europe by AUM, having doubled assets over three years to some €10.3bn.
Net inflows to Amundi over the first nine months of 2013 were €1.1bn, pushed by distributors, institutional and corporate customers. However, money market inflows were adversely affected by low interest rates, the manager said.