The new Pioneer will have over €353bn in assets under management, at today’s valuations.
The deal, which has been expected for some time,values Santander Asset Management at €2.6bn and Pioneer Investments at €2.75bn.
The companies said the tie-up will bring a number of advantages including ‘substantial scale enhancement’ and greater diversification in terms of products, client base and distribution channels.
The new entity will have long term distribution agreements with Santander and UniCredit across Europe and Latin America.
Santander and UniCredit will have a 33.3% stake each, while Warburg Pincus and General Atlantic will share the remaining 33.3%.
Juan Alcaraz, current CEO of Santander Asset Management, will be the CEO of the new company and Giordano Lombardo, current CEO and CIO of Pioneer Investment will be the CIO.
The deal is not yet legally binding and still requires regulatory approval.
