Allianz and Amundi Pause Merger Talks

MUNICH (Reuters) – Allianz (ETR:ALVG) and Amundi have paused discussions about combining their asset management businesses into a European investment giant managing nearly €2.8 trillion ($3 trillion) in assets, according to a source close to Allianz.

Germany's Allianz has been exploring options for its Allianz Global Investors unit, including a potential merger or partial sale, as reported in October. Notably, its asset manager Pimco was excluded from these discussions.

Talks between Allianz and Paris-based Amundi, Europe's largest asset manager owned by French bank Credit Agricole (OTC:CRARY), were ongoing but have now stalled, the source mentioned. It remains unclear if discussions will resume in the future.

An Amundi spokesperson stated on Sunday that it is not currently in discussions with Allianz and offered no further comments.

AllianzGI, which manages €560 billion in assets according to its website, could potentially be valued at over €4 billion including debts, as reported by Reuters in October.

The Financial Times noted that a significant barrier in negotiations was the structural arrangement of the merger and the control of a larger corporate entity.

Allianz's exploration regarding AGI comes after BNP Paribas (OTC:BNPQY) announced its acquisition of AXA Investment Managers for over €5 billion. This transaction led bankers to anticipate increased deal activity, with Amundi also interested in the unit, according to Reuters.

Allianz's finance chief Claire-Marie Coste-Lepoutre expressed last month that the insurer was satisfied with its current structure and did not intend to lessen the contribution from its asset management divisions.

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