Banco de Sabadell SA will sell its asset management unit to France's Amundi SA for €430 million.
Amundi's acquisition of Sabadell Asset Management, which has €21.8 billion in AUM as of 2019-end, will include an earnout of up to €30 million payable in 2024, based on the business' future performance. The transaction will be financed using Amundi's existing cash resources, Sabadell said Jan. 21.
As part of the deal, the firms also signed a 10-year strategic partnership that will enable Sabadell to distribute Amundi products across its 1,900-branch network in Spain.
Subject to regulatory approvals, the deal is expected to close in the third quarter. Sabadell Asset Management and Amundi's local unit Amundi Iberia, which has €21 billion in AUM as of the end of September 2019, will remain as separate legal entities.
The Spanish lender expects the transaction to generate a capital gain of €351 million net of taxes — of which €293 million will be recognized once the transaction completes, while the remaining €58 million will be subject to certain guarantees effective over the strategic partnership period and will thus be accrued proportionally over the decade.
The deal will add 43 basis points to Sabadell's fully loaded common equity Tier 1 ratio, bolstering its capital position.
Separately, Amundi parent Crédit Agricole Group said the deal will have a negative impact of approximately 10 basis points on Crédit Agricole SA's CET 1 ratio and 5 basis points on that of the group's.
German insurer Allianz SE and pan-European asset management firm Candriam Investors Group were also vying to acquire Sabadell's asset management unit, according to the Financial Times.