In the combined company, which will be known as Pioneer Investments, Santander will own a direct 33.3% stake andUniCredit 33.3% stake, while buyout firms Warburg Pincus and General Atlantic will own the remaining 33.3%.
UniCredit and the private equity fund managers will own Pioneer’s US operations.
Set to deliver improved growth and profitability, the new company will also have diversification in mature as well as high growth markets, with respect to products, client base and distribution channels.
For Santander Asset Management, the latest deal is valued at €2.6bn and for Pioneer Investments it is valued at €2.75bn.
The long-term distribution agreements with Santander and UniCredit are expected to increase retail distribution capabilities in Europe and Latin America.
The partnership between the two asset managers will also help clients improve their product and service offering.
As part of the transaction, which will not have any material impact in the Santander Group’s capital, Warburg Pincus and General Atlantic will make an additional equity investment into the new company.
According to Santander, the parties will work towards signing a definitive and legally binding agreement after completing the signing of preliminary agreement.
With a presence in 11 countries, Santander Asset Management has assets of €172.5bn across all types of investment vehicles.
Independent global asset manager Pioneer is spread over 28 countries and manages €225bn in assets that are uniformly split between proprietary distribution through UniCredit on one side, and intermediary and institutional clients globally on the other.
Image: Banco Santander headquarters in Santander, Spain. Photo: courtesy of Yearofthedragon
