Paris, 7 April 2021 – Lyxor is one of the key players in the European ETF market along with Blackrock, DWS, Legal & General Investment Management (LGIM) and Credit Suisse AM. It boasts a 7.4% market share and with €77bn of Assets under Management (AUM), as of end 2020. It has developed a recognised expertise in active management (€47bn of AuM) through its liquid alternative assets investment platforms (notably UCITS funds) for private banks and asset managers.
ETFs had taken in a record $499 billion in net flows and held just under $5.5 trillion of investors’ money at the end of 2020 according to Morningstar. While Blackrock continued to dominate the European ETF industry in 2020, post this acquisition, it is expected that Amundi would become the European leader in ETF, with €142bn combined AuM, a 14% market share in Europe and significantly diversify its profile in terms of client base and geography.
Yves Perrier, Chief Executive Officer of Amundi, commented: “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 recognised 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”.
Amundi would gain strong leverage to accelerate its development in the fast-growing ETF segment, while complementing its offering in active management, in particular in liquid alternative assets as well as investments solutions segments, mentioned Valérie Baudson, Deputy Chief Executive Officer of Amundi.
Given the high synergy potential, this transaction compliant with Amundi’s financial discipline would be significantly value accretive, with:
– an enterprise value representing a P/E 2021e multiple of ~10x, including run-rate cost synergies only
– ~+7% accretive on Amundi’s EPS 2021e, including run-rate cost synergies only
– return on Investment > 10% in year 3 after completion including run-rate cost synergies only
The transaction is expected to be completed by February 2022 at the latest, after consultation with the Works Councils, and subject to receiving the required regulatory and anti-trust approvals.
*** Certain activities from Lyxor are excluded from the scope of the transaction and retained by Société Générale: (i) structured asset management solutions intended for Société Générale’s global markets clients and (ii) asset management activities dedicated to savings solutions and carried out for Société Générale (Branch networks and Private Banking) such as structuring of saving solutions, funds selection and the supervision of the Société Générale Group’s asset management companies
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