Amundi and Victory Capital have reached a “definitive agreement” on the terms of their merger, the two companies have announced.

The agreement is in line with the previously-released memorandum of understanding, which proposed that Amundi US will be combined with Victory Capital, with Amundi becoming a strategic shareholder and taking a 26.1 per cent stake in Victory Capital.

Both parties have entered into 15-year distribution and services agreements, which will be effective upon the closing of the transaction.

Under the terms of the agreement, Amundi will become the distributor of Victory Capital’s US-manufactured active asset management products outside of the US. Amundi will also become the supplier of non-US manufactured products for Victory’s distribution in the US.

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“The transaction will allow Amundi to strengthen its presence in the US via a larger US investment and distribution platform,” said Valérie Baudson, chief executive of Amundi.

“It will also provide Amundi’s clients worldwide with access to a broader range of high-performing US investment solutions.

“Thanks to this transaction, Amundi will become a strategic shareholder in a US-based asset management firm with a consistent track record of development. This is a compelling proposition for our clients and our employees.  It is also a value-creating deal for our shareholders.”

The merger is expected to close towards the end of 2024 or in early 2025. Amundi expects the transaction to result in a “material increase in the contribution from US operations to its results”, which should lead to a small increase in its adjusted net income.

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