Amundi Lyxor’s rival is close to a deal to buy him for 825 million euros
Amundi, an asset manager in Paris, has entered into exclusive talks to buy Lyxor Société Générale into a $ 825 million deal to better supply it in a deal that will compete against aggressive U.S. opponents spreading across Europe.
Amundi will acquire Lyxor, a unit of funds traded for 77 billion euros, and will become the second largest player in the fast-growing European ETF industry behind BlackRock. Lyxor will also acquire 47 billion euros in actively managed assets, including hedge funds focused on alternative investments.
The agreement, which is subject to regulatory approval, excludes around 16 billion euros from Lyxor in assets under management, such as in areas such as structured products, which will be maintained by Société Générale.
The dissolution of Lyxor’s intricate relationship with Société Générale has been one of the main obstacles to the deal, which has been the subject of market speculation for more than 18 months.
The acquisition ended Yves Perrier’s 11-year term as CEO, during which time he assisted Amundi as Europe’s largest asset manager.
Perrier, who will become president of Amundi in May, said the purchase of Lyxor would strengthen Paris ’position as a European financial center in the post-Brexit era.
“Acquiring Lyxor will accelerate the development of Amundi on ETBs and alternative asset management with highly supported investment groups,” Perrier said.
Valérie Baudson, CEO of Amundi’s ETF business in 2008, will be CEO in May.
Amundi estimates that the purchase will increase its profits per share by about 7% in 2021 and will provide an investment of more than 10% in the third year after the end of the agreement, which is expected by February 2022 at the latest. Lyxor’s valuation of € 825 million is a multiple of the company’s 10 times the estimated profit for 2021.