Slaughter and May is advising Banco Santander - combination of Santander Asset Management and Pioneer Investments
Slaughter and May, working alongside Uría Menéndez and Davis Polk & Wardwell LLP, is advising Banco Santander, S.A. on its preliminary and exclusive agreement with Warburg Pincus, General Atlantic and UniCredit S.p.A. to merge Santander Asset Management and Pioneer Investments to create a leading global asset manager in Europe and Latin America. The combined company, with approximately EUR 353 billion in assets under management at the close of 2014, will be called Pioneer Investments.
The transaction values Santander Asset Management at EUR 2.6 billion and Pioneer Investments at EUR 2.75 billion.
Under the preliminary agreement, which was announced on 23 April 2015 and remains subject to signing of final terms, a new company will be created into which the local asset managers of Santander Asset Management and Pioneer Investments will be incorporated. Santander will have a direct 33.3% stake in the new company, UniCredit a 33.3% stake, and private equity fund managers Warburg Pincus and General Atlantic will share a 33.3% stake. Pioneer Investments’ operations in the United States will not be included in the new company, but will be owned by UniCredit (50%) and Warburg Pincus and General Atlantic (50%).
The parties will now work towards signing a definitive and legally binding agreement in respect of the transaction, which will be subject to customary regulatory and corporate approvals.