US-based Ameriprise Financial has inked a definitive agreement to buy BMO Financial Group’s EMEA money management business. The deal adds $124 billion in European AUM and is slated to finalise in Q4 2021, pending regulatory approval.
Ameriprise-owned Columbia Threadneedle Investment’s AUM will grow to $671 billion with the deal, increasing its EMEA AUM to 40% of total assets. The move, according to Ameriprise, will add a significant presence to the European institutional investment market.
Additionally, Ameriprise and BMO crafted a separate agreement for US clients, which provides select BMO money management clients with the chance to transfer to Columbia Threadneedle Investments. The terms of this deal were not disclosed.
The acquisition will also give BMO’s North America-based wealth management clients access to Columbia Threadneedle’s strategies.
Ted Truscott, Columbia Threadneedle CEO, remarked: “Adding BMO’s EMEA asset management business is an exceptional growth opportunity. The transaction advances our strategy and enhances our geographic and asset class diversification, enabling us to serve more clients and meet more of their needs. Critical to this opportunity is the strong alignment between our organizations. We share a client-centric culture, fundamental belief in active management, collaborative and research-based investment approach, and long-held commitment to responsible investment principles.”
Joanna Rotenberg, BMO Wealth Management group head, said the acquisition “enables us to focus our resources where we have a competitive advantage and are well-positioned to deliver growth and accretive returns. We will continue to invest in our diversified North American wealth businesses, including our Canadian asset management business, to provide an unrivalled experience for our clients as their needs change.”