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Ameriprise Builds EMEA Footprint In $845 Million Deal
Under the terms of the agreement, certain clients in the US have the opportunity to switch to Columbia Threadneedle, an Ameriprise-owned business.
US-listed Ameriprise
Financial has entered a definitive agreement to buy BMO
Financial Group‘s European, Middle East and Africa business for
£615 million (around $845 million).
The all-cash transaction adds $124 billion of AuM in Europe and
is expected to close in the fourth quarter of 2021, subject to
regulatory approvals in the relevant jurisdictions, Ameriprise
said in a statement yesterday.
Together with BMO’s EMEA asset management business, Ameriprise
will have more than $1.2 trillion of assets under management and
administration.
The deal runs alongside Columbia Threadneedle Investments’ core
business and global growth strategy. (That business is owned by
Ameriprise.) The addition of BMO’s business will increase
Columbia Threadneedle’s AuM to $671 billion.
Separately, in the US, some BMO asset management clients will
have the opportunity of moving to Columbia Threadneedle, subject
to client consent.
The transaction is expected to be accretive in 2023 and to
generate an internal rate of return of 20 per cent.