Bank of Baroda is acquiring a 51% stake in Baroda Pioneer Asset Management Co. Ltd. from joint venture partner Pioneer Investments, a unit of Amundi SA, India's The Economic Times reported Dec. 11, citing an official of the Indian bank.
India does not allow foreign asset managers to hold sponsor stakes in more than one fund house. After its acquisition of Pioneer Investments, Amundi's sale of the Baroda Pioneer Asset Management stake became inevitable since it already holds a 37% stake in SBI Mutual Fund.
The Bank of Baroda official suggested that the bank will eventually seek an investor for Baroda Pioneer Asset Management, saying the bank remains committed to selling noncore assets. The lender said in August that it was seeking to raise up to 20 billion rupees through the sale of noncore assets.
Financial details of the transaction were not immediately known, the publication reported.
As of Dec. 8, US$1 was equivalent to 64.45 Indian rupees.
