Amundi to become European ETF leader with Lyxor acquisition
Amundi is to buy Lyxor’s ETF and actively managed alternative platform from Société Générale for a total cash consideration of EUR825 million, or EUR755 million excluding excess capital, in a move that will result in Amundi becoming the European leader in ETFs with EUR142 billion in assets and a 14 per cent market share in Europe.
Amundi writes that the firm will also benefit from a diversified profile in terms of client base, and ‘strong levers to accelerate its development on the fast-growing ETF segment, while complementing its offering in active management, in particular in liquid alternative assets as well as advisory solutions.’ Lyxor’s EUR47 billion of actively managed alternative assets are to come with the acquisition.
Founded in 1998, Lyxor has been one of the key players in ETFs in Europe, with EUR124 billion in ETF assets, making it the third largest in Europe with a 7.4 per cent market share.
Amundi describes the deal as ‘significantly value accretive’, and expects the return on investment to be greater than 10 per cent in year three after completion including run-rate cost synergies only. Subject to regulatory approval, the deal is expected to be completed by February 2022 at the latest.
Yves Perrier (pictured), Chief Executive Officer of Amundi, says: “The acquisition of Lyxor will accelerate the development of Amundi, as it will reinforce our expertise, namely in ETF and alternative asset management, and allows us to welcome highly recognized teams of people. This acquisition is fully in line with the Crédit Agricole group’s reinforcement strategy in the asset gathering business. It will also further reinforce the business relationships with our historical partner Société Générale. Finally, by creating in France the European leader in passive asset management, it will contribute to the post-Brexit positioning of the Paris financial centre”.
Valérie Baudson, Deputy Chief Executive Officer of Amundi, said: “We are glad and are looking forward to welcoming the talented teams of Lyxor. The combinations of our strengths will allow us to accelerate our development in the ETF, alternative asset management and the investments solutions segments”.