Amundi French assets management company has announced the acquisition of Lyxor. Lyxor will now be acquired from Societe Generale, a French assets management company. The acquisition was finalized on December 31.
The fund management firm noted that the required regulatory processes had been finalized, and it has completed the necessary transactions to buy Lyxor.
Amundi acquires Lyxor for €825M
Amundi noted that it had purchased Lyxor for a total of €825 million. The purchase was made two months before the acquisition was finalized.
Lyxor is one of the dominant firms in the exchange-traded fund (ETF) market in Europe. It has become well-versed in active management using its liquid alternative program. The acquisition also involves active and passive asset management activities at Lyxor.
Through this acquisition, Amundi will become a leading ETFs group in Europe. The company has a 14% market share, and its total assets under management (AUM) stands at €142 billion. Amundi will also have a chance to further its development and make the firm more versed in ETFs and alternative asset management.
Societe Generale boosting its operations
Societe Generale’s move to sell its Lyxor business unit comes when the bank seeks to boost its financial performance. In 2020, the firm’s financial performance was disappointing. In the first quarter of 2020, it reported a net loss of €326 million.
During the second quarter of 2021, the group reported a net loss of €1.264 million. In December 2020, the firm announced a merger between two of its retail brands to reduce costs and allow it to operate as a single IT unit.
Additionally, the institution is also planning on investing in Boursorama, its digital banking unit. Through this investment, the firm intends to have over four million clients by 2025.
Because of the effects caused by the Covid-19 pandemic, the firm is now focusing on its digital banking division, which will allow it to achieve growth and become a leading bank in France.
The bank seeks to merge its traditional customers with its digital savvy ones by automating its digital services. Digitization of financial services allows these banks to cut costs by closing some branches, job cuts, etc.