State-owned Bank of Baroda said on Thursday it has agreed to acquire Italian partner UniCredit SpA’s 51% stake in their mutual fund joint venture.
The bank will now fully own Baroda Pioneer Asset Management Company, it said in a statement.
The transaction involves both asset management and trustee firms. However, the value of the deal is not disclosed.
“Bank of Baroda has been committed to creating value for its stakeholders. Given the rapid growth in the mutual fund industry, and the trend of household savings moving towards financial assets, the bank sees merit in building out the asset management business, with an aim to become a meaningful player in the asset and wealth management space,” said PS Jayakumar, managing director of Bank of Baroda.
He said bank may evaluate the option of inducting a strategic partner.
As on 30 November 2017, the fund’s assets under management stood at Rs 11,000 crore.
Pioneer Global Asset Management SpA had acquired 51% of Bank of Baroda Asset Management in 2008.
Last December, UniCredit sold its asset management business Pioneer Investments to Amundi, Europe’s largest standalone asset manager, for €3.55 billion. Amundi is present in the Indian mutual fund market through SBI Funds Management Pvt. Ltd, its joint venture with State Bank of India.
Recent developments in mutual fund sector
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Last month, Housing Development Finance Corporation Ltd initiated the process to list its mutual fund arm HDFC Asset Management Co Ltd.