Shares in Unicredit jumped over three per cent this morning after French asset manager Amundi sealed the deal to buy Pioneer Investments from the Italian lender for €3.5bn (£2.9bn)
Before the transaction even closes, Unicredit's cash coffers will be bolstered by a €315m payment from Pioneer to its soon-to-be former parent.
Amundi has moved quickly in agreeing binding terms, just a week after entering into an exclusive agreement with Unicredit. The deal excludes Pioneer's operations in Poland.
Pioneer, Europe's largest fund manager in terms of assets under management, will have a continued association with Unicredit. The Italian bank and Amundi will form a "strategic partnership for the distribution of asset management products underpinned by a 10-year distribution agreement for Italy, Germany and Austria".
Aside from the cash benefits of the deal, Unicredit will be able to book a €2.2bn gain in 2017 from the sale.
Chief exec of Unicredit Jean Pierre Mustier said the deal was "another tangible example of UniCredit’s new strategic approach announced on 11 July 2016".
Mustier also lauded the distribution partnership: "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."