Allianz and Amundi Halt Talks on Asset Management Merger

Allianz SE and Amundi SA have temporarily halted their discussions to merge their asset management businesses, a move that would have created a European investment giant managing nearly €2.8 trillion in assets. The talks, which have been ongoing for over a year, were paused due to disagreements over the structure of the deal and control of the combined entity, according to sources familiar with the matter.

Allianz, a German financial services company, has been exploring options for its Allianz Global Investors (AGI) unit, including a potential merger or partial sale. However, the discussions with Amundi, Europe's largest asset manager owned by Crédit Agricole, have been put on hold. A key sticking point in the negotiations was the control of the enlarged group, with Allianz seeking a co-leadership role, while Amundi viewed the potential transaction as an acquisition.

The pause in talks underscores the complexities involved in large-scale mergers and acquisitions within the asset management sector, which is currently experiencing a wave of consolidation. Recent deals in the industry include BNP Paribas's acquisition of AXA Investment Managers for €5 billion, a transaction that has spurred further dealmaking.

Amundi, which has grown significantly since its creation in 2010 through the merger of the asset management arms of Crédit Agricole and Société Générale, has a market capitalization of €13.75 billion and manages €2.2 trillion in assets. In contrast, Allianz Global Investors manages €555 billion in assets and was valued at over €4 billion, including debt.

Despite the pause, there is potential for talks to resume in the future. Allianz has emphasized that its asset management business is strategically integral to the group and that it would only consider growth opportunities that enhance its strengths in this area. Meanwhile, Amundi has declined to comment on the specifics of the discussions.

The asset management industry is facing rising costs and pressure on fees, prompting firms to seek greater scale to compete with larger US fund houses and alternative investment firms. As banks and insurers evaluate their commitment to investment management, the sector is likely to see continued consolidation and strategic partnerships.