A new giant in the asset management
There is not a significant and worthily presence of the southern Europe in the asset management industry. The Southern Europe has big percentage of savings respect to the incomes but the most famous names of the money management industry come from Great Britain, Switzerland, Holland and Germany. But the joining forces between two of the most important companies in the business which are Unicredit and Santander will create a respected name in the high finance of Europe.
Pioneer Investments and Santander Asset Management will become a unique company and will have unique strategies on raising the share in the global market of asset management. The first company is owned 100% by Unicredit Group and the second is owned by the leader of the Spanish banking system Santander. This new giant will have 400 billion euro of assets under management and the CEO of this new entity will be Juan Alcarez, currently the CEO of S.A.M.. The new company will be definitely a leader in Europe and will also be present in 30 countries around the world.
Investors were very pleased to hear about this new deal and have reacted by buying the stocks of both companies. The competition in the money management business already has become very aggressive so it’s very important for the smallest companies to gain from the economies of scale. In fact this movement is a little late for the European market but let’s hope that customers that have been for long time penalized by high commissions in different kind of funds now will reduce by much their cost and will have larger opportunities to invest.