Amundi and Credit Agricole Immobilier will merge their real estate businesses, creating a manager with about €20 billion ($22.3 billion) in assets under management.
CA Immobilier Investors will be absorbed by Amundi Immobilier, a news release said. The purpose of the deal is to create a French business with European scale, to drive business development with large institutional clients in France and elsewhere. It will also strengthen Amundi's position in real estate. Amundi Immobilier has €12 billion of assets, split about 60% retail and 40% institutional business. CAII has around €5 billion managed on behalf of institutional clients.
Under the terms of the transaction, Credit Agricole Immobilier will contribute CAII shares to Amundi, in return for Amundi shares. The news release said that, based on a €29.3 million valuation of CAII, and a €43 Amundi share value, Amundi will issue 680,232 new shares for the benefit of Credit Agricole Immobilier, representing 0.4% of Amundi's capital. This new share issue is expected to take place in the fourth quarter.
A spokesman for Amundi said all CAII staff will move to Amundi when the deal completes.