Amundi has completed the acquisition of Lyxor from Société Générale creating the second largest ETF business in Europe.
The €825m acquisition, which was originally announced in April 2021, will see the combined ETF business control over €170bn assets under management (AUM) across more than 300 products, a 14% share of the European market.
Amundi said it expects run-rate annual cost savings of €60m and run-rate annual net revenue savings of €30m, the full impact of which is expected in 2024 and 2025, respectively.
Europe’s largest asset manager is targeting a 50% AUM growth by 2025 from its wider passive platform which currently has €282bn AUM.
Valerie Baudson (pictured), CEO of Amundi, commented: “The Lyxor acquisition is another important step in the deployment of Amundi’s strategy. The key managers of these two businesses have been appointed.
“Demand for passive management and ETFs in particular, has been undeniably growing over recent years among all type of investors. Their intrinsic benefits of cost efficiency and transparency supported by product innovation have contributed to confirm their value as efficient tools for both strategic and tactical asset allocation.
“This growth is also boosted by additional drivers such as the MIFID II regulation on cost-transparency, the ESG transformation or more recently the increased digitalisation of distribution channels.”
Founded in 1998, Lyxor launched its first ETF in December 2000, the Lyxor CAC 40 UCITS ETF (CAC). The firm’s ETF range now houses over €100bn AUM after becoming the third issuer in Europe to cross the milestone last December.
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