Amundi Inks MoU To Combine Its US Arm With Victory Capital

(RTTNews) - Amundi, a subsidiary of French banking major Credit Agricole SA (CRARF.PK) and Victory Capital Holdings Inc. (VCTR), an American financial services provider, announced on Tuesday that they have signed a Memorandum of Understanding or MoU to combine Amundi US into Victory Capital.

Post transaction, Amundi US will be combined into Victory Capital in exchange for a 26.1 percent economic stake for Amundi in Victory Capital, without cash payment.

David Brown, CEO of Victory Capital believes the business combination will be earnings accretive.

The companies will simultaneously enter into 15-year reciprocal distribution agreements to allow Amundi as a distributor of Victory Capital's investment offering outside of the U.S. through Amundi's global client base.

In addition, Victory Capital will distribute Amundi's non-U.S. manufactured products in the U.S. that allows Victory Capital's clients to get Amundi's non-US investment capabilities.

The proposed transaction is expected to benefit clients of both firms with a range of asset classes including actively managed fixed income, equity, and multi-asset investment strategies offered through a variety of investment vehicles including separately managed accounts, ETFs, mutual funds, and others.

Victory Capital has a $175 billion of total client assets, whereas Amundi US currently manages $104 billion of assets.