EU: Santander, UniCredit could abandon €5.3B deal thanks to Brexit

Italy’s UniCredit and Spain’s Banco Santander are scrambling to save a plan that would create one of Europe’s largest money managers after the UK’s vote to leave the EU added to concerns about the outlook for the €5.3bn deal.

Pioneer Investments, UniCredit’s fund management arm, and Santander Asset Management have been in talks for more than 20 months to create a European fund manager with almost €400bn in assets.

The transaction has been hit by a number of complications since negotiations began, including new management at both banks and changes to the terms of the deal last year to avoid provoking US regulators.

One person close to the talks said that the UK’s vote to leave the EU has also changed the outlook for the deal. Investment companies based in London could face restrictions selling fund management products into the EU. European regulators are also scrutinising the deal.

Santander Asset Management has its headquarters in the City of London. A person following the negotiations closely said: “A lot has changed since the deal was first announced. The overall environment has evolved with a new CEO arriving at UniCredit and most recently Brexit.”

Full Content: Financial Times

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