Amundi has purchased Pioneer Investments in a €3.5bn deal making it the world’s eighth largest asset manager.
It sees the French business’s assets under management reach €1.3trn. Pioneer, which specialises in retail products, has €222bn assets under management.
The transaction is due to complete in the first half of 2017.
It follows news last week that two senior members of the Pioneer European fixed income team had been suspended due to allegations they were trying to establish a rival asset manager in anticipation of job losses resulting from a deal.
Italian insurer Assicurazioni Generali and a consortium led by Poste Italiane were among the bidders for Pioneer.
Aberdeen Asset Management withdrew its bid in November stating that the €3.5bn price tag was too large, but pointing out it was still on the look out for other acquisitions.
As part of the deal, Amundi will enter a 10-year strategic partnership with Unicredit, the Italian bank that owns Pioneer, for the distribution of products in Germany, Austria and Italy.
Amundi has announced that Italy will become its second domestic market, with €160bn under management, and that it will significantly boost the number of staff in Milan.
Amundi chief executive Yves Perrier says the acquisition is a major step towards cementing the company as Europe’s leading asset manager.
Perrier says Pioneer offered a complementary business geographic profile and reinforced Amundi’s industrial model.
Pioneer chief executive Jean Pierre Mustier says: “Thanks to a long term distribution agreement, UniCredit’s customers will have access to an extended range of quality products and services whilst the group will reap the benefit of additional fee income from expected increased sales.
“The transaction means Italy becomes Amundi’s second largest domestic market and Amundi will turn Milan into one of its core investment hubs, creating new jobs and ensuring close proximity to UniCredit, our teams and clients.”