MUNICH (Reuters) – Allianz (ETR:) and Amundi have halted talks about combining their asset management businesses into a European investment giant that would manage almost 2.8 trillion euros ($3 trillion) in assets, it said. a source close to Allianz.
Germany's Allianz has been examining options for its Allianz Global Investors unit, including a possible merger or partial sale of the division, Reuters reported in October. Asset manager Pimco, which Allianz also owns, was not involved in the talks.
Allianz and Paris-based Amundi, Europe's largest asset manager and owned by French bank Credit Agricole (OTC:), have been holding talks about a partnership for some time but have since paused, the source said. It is unclear whether talks could restart at a future stage.
An Amundi spokesman said on Sunday it was not in talks with Allianz and declined to comment further.
AllianzGI, which manages €560 billion in assets according to its website, could be valued at more than €4 billion, including debt, Reuters reported in October.
The Financial Times, citing people familiar with the situation, reported on Saturday that a key sticking point between the two sides had been the structure of any combination and who would have control of an expanded group.
Allianz's considerations about what to do with AGI follow BNP Paribas' (OTC:) decision to buy AXA Investment Managers for more than €5 billion, a transaction that bankers hoped would spur more deals. Amundi had also been vying for the unit, Reuters reported.
Allianz chief financial officer Claire-Marie Coste-Lepoutre said last month that the insurer liked its current setup and did not intend to reduce the contribution its asset management businesses make to the group.
(1 dollar = 0.9463 euros)
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