European fund giant Amundi - the Credit Agricole/Societe Generale joint venture - has become even larger by buying an Austrian asset management house.

The Austrian bank BAWAG PSK has completed the sale of its asset management subsidiary, BAWAG PSK INVEST, to the European asset manager Amundi.

The acquisition will see BAWAG PSK INVEST, which has €5 billion ($5.66 billion) assets under management (as of December 2014), become a wholly-owned asset management subsidiary of Amundi. The terms of the deal have not been disclosed, according to a statement from the firms yesterday.

The two businesses have entered into a long-term partnership through which BAWAG PSK will distribute Amundi’s funds and continue to provide access to INVEST products via its physical and digital distribution networks. With a total of €850 billion assets under management, Amundi is Europe’s largest asset manager. BAWAG PSK has the largest centrally managed branch network with 500 branches across Austria.

The acquisition will see BAWAG PSK retain its name, with a reference to the Amundi Group, while Amundi will continue to operate INVEST in Austria, the firms said.

“By executing this transaction, we are able to simplify our bank and focus on our core franchises – retail banking and corporate lending. At the same time, by entering into a long-term distribution partnership with Amundi, we can continue to offer a broad range of fund products to our customers. Overall, this is a win-win situation for all parties and in line with our strategy of transforming BAWAG PSK,” Byron Haynes, chief executive of BAWAG PSK, said.  

Yves Perrier, chief executive of Amundi, said: “This acquisition of INVEST and the long-term partnership with BAWAG PSK allow us to establish a strong local footprint in Austria and to access one of the strongest franchises in retail distribution. This transaction highlights our recognised expertise as a partner of choice to provide savings solutions to the customers of banking networks.”