| Log in
Photo Credit: Shah Junaid/VCCircle

Bank of Baroda to buy out UniCredit from mutual fund JV

28 December, 2017

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
Reliance Nippon Life Asset Management raised Rs 1,542.24 crore ($238 million) via an initial public offering in October.

Last month, Housing Development Finance Corporation Ltd initiated the process to list its mutual fund arm HDFC Asset Management Co Ltd.

Like this report? Sign up for our daily newsletter to get our top reports.


Leave Your Comment
UTI AMC Attracts Bids From 4 Investors; Valued At Rs 3,500 Cr: Report

UTI AMC Attracts Bids From 4 Investors; Valued At Rs 3,500 Cr: Report

Pallavi S 9 years ago
Schroders, Vanguard Mutual Fund and T Rowe Price have reportedly submitted bids...
UTI AMC In Talks To Divest 26% To Strategic Buyer

UTI AMC In Talks To Divest 26% To Strategic Buyer

TEAM VCC 10 years ago
UTI Asset Management Company (AMC), India’s oldest fund house with assets...
It's A Deal; T Rowe Price To Pay Rs 650 Cr For 26% In UTI AMC

It’s A Deal; T Rowe Price To Pay Rs 650 Cr For 26% In UTI AMC

Madhav A Chanchani 9 years ago
Update: It is official. State Bank of India (SBI), Bank of Baroda (BoB) and...
No Comments

Bank of Baroda to buy out UniCredit from mutual fund JV

Powered by WordPress.com VIP