Pioneer Investments and Santander Asset Management will merge to create a €353 billion ($381.6 billion) global money manager.
The new company, which will be called Pioneer Investments, will be created following a preliminary and exclusive agreement among Pioneer parent firm, UniCredit; SAM parent, Banco Santander; and private equity managers Warburg Pincus and General Atlantic.
A spokeswoman for Pioneer confirmed the firms will be run as one global business. Juan Alcaraz, CEO of Santander Asset Management, will become global CEO, and Giordano Lombardo, CEO and group chief investment officer of Pioneer Investments, will become global CIO for the new firm.
The agreement will lead to the establishment of a holding company, Pioneer Investments, which will control Pioneer's U.S. operations, and a combination of Pioneer and Santander's operations outside the U.S.
The holding company, which will own 100% of the U.S. Pioneer operations, will be owned 50% by UniCredit, and 50% by Warburg Pincus and General Atlantic. UniCredit and the private equity firms also will own 66.7% of the newly combined Santander Asset Management and Pioneer ex-U.S. business. Banco Santander will directly own the remaining 33.3% of the combined firm, said news releases from both firms.
The agreement values Pioneer Investments at €2.75 billion, and Santander Asset Management at €2.6 billion. Pioneer Investments has €225 billion of assets under management. Santander Asset Management, which is owned 50% by Banco Santander, and 50% jointly by Warburg Pincus and General Atlantic, has €172.5 billion of assets under management.