Pioneer and Santander AM fail to merge

Unicredit announced it has agreed with Banco Santander and Sherbrooke Acquisition Corp to end the agreements entered into on 11 November 2015 regarding the merger of Pioneer Investments and Santander Asset Management.

The Italian and the Spanish banking groups failed to establish a European asset manager with almost €400bn in assets.

“The parties held detailed discussions to identify viable solutions to meet all regulatory requirements to complete the transaction, but in the absence of any workable solution within a reasonable time horizon, the parties have concluded that ending the talks was the most appropriate course of action,” the company stated.

Unicredit said Pioneer will not be included in the scope of the strategic review launched on 11 July by the firm’s new CEO Jean-Pierre Mustier, this “to explore the best alternatives for all Pioneer stakeholders including a potential IPO.”

The company said it will ensure Unicredit has the adequate resources to speed up growth and pursue product development.

The merger has been hit by several complications during the negotiations, including changes in management at both banks and in the terms of the deal agreed by the two parties.

Following the news, Unicredit’s shares have today dropped to €2.11 from €2.23 at close of trading on 26 May before stabilising around €2.16 in the end of the morning.

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is deputy editor and French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

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