Mumbai, December 28, 2017: Bank of Baroda has entered into an agreement with UniCredit S.p.A. to acquire their 51% stake in Baroda Pioneer Asset Management Company, thus increasing its shareholding to 100%. Its foreign partner Pioneer Investments will exit the venture.
The agreement is subject to approval from regulatory authorities. The move comes on the back of the acquisition of Pioneer Investments by Amundi earlier this year. Amundi already has a presence in an Indian AMC.
“Given the rapid growth in the mutual fund industry, and the trend of household savings moving towards financial assets, the bank sees merit in building out the asset management business, with an aim to become a meaningful player in the asset and wealth management space. While in many respects, it will be business as usual, we are keen to see significant growth in the business Hence, we will evaluate all options in that regard, including inducting a strategic partner, if merited” said P.S. Jayakumar, Managing Director & CEO, Bank of Beroda.
As on November 2017, the fund’s average assets under management (AUM) stood at about Rs. 11,000 crores.