The potential tie-up between Pioneer and Santander Asset Management has been called off, ending talks to create Europe’s largest asset manager.
UniCredit, parent company of Pioneer, says in a statement that it has agreed with Banco Santander to end the talks of a tie-up, which would have created an€400bn asset manager.
The deal has faced troubles following the UK’s decision to exit the EU, with insiders saying it has changed the outlook for the deal.
The two sides had been discussing a merger for 20 months, with the terms of the deal changing over that time.
However, in a statement UniCredit says: “The parties held detailed discussions to identify viable solutions to meet all regulatory requirements to complete the transaction, but in the absence of any workable solution within a reasonable time horizon, the parties have concluded that ending the talks was the most appropriate course of action.”
UniCredit adds that it will now include the Pioneer division in its group-wide strategic review to “explore the best alternatives for all Pioneer stakeholders including a potential IPO”.