France’s Amundi is acquiring local rival Lyxor Asset Management from Société Générale for 825 million euros (US$981.75 million), a deal that is expected to help it leapfrog rivals to become the second largest exchange-traded fund manager in Europe.
According to Amundi, the acquisition will make it “the European leader in ETF, with 142 billion euros combined AUM, a 14% market share in Europe and a diversified profile in terms of client base and geography”.
“Amundi would benefit from 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,” the Paris-based asset manager says in a statement on April 7. The deal is expected to be completed by February 2022.
Lyxor is the third largest ETF manager in Europe after US asset management giant BlackRock Inc. and Germany’s DWS, with 77 billion euros of ETF assets, or 7.4% market share, as of December 2020, according to figures from investment consultancy ETFGI.
Amundi, which managed 1.73 trillion euros of assets at the end of 2020, has around 65 billion euros of ETF assets currently.
Its Chief Executive Officer Yves Perrier says the deal will reinforce the company’s expertise in ETF and alternative asset management.
“This acquisition is fully in line with [Amundi’s parent] Crédit Agricole group’s reinforcement strategy in the asset gathering business,” he says in the statement.
The purchase of Lyxor is expected to turn Amundi into the second largest ETF manager in Europe, according to estimates from Jackie Choy, director of Asia ETF at investment consultancy Morningstar.
But he says it’s unlikely to have any tangible impact on the company’s ETF business in Asia.
“Lyxor and Amundi have not been very active in ETFs in Asia over the past few years,” Choy tells Asia Asset Management. “The focus of the acquisition is on Amundi’s ETF business in Europe. It’s unlikely to prompt Amundi to adjust its Asian strategies in the short run.”
Lyxor had around 124 billion euros of total assets at the end of 2020.