Columbia Threadneedle is to take on BMO's European asset management business after a deal was struck with parent company Ameriprise Financial.
Ameriprise Financial yesterday (13 April) signed an agreement with BMO Financial Group to acquire its EMEA asset management business for £615m.
The all-cash transaction adds $124bn (£90bn) of AUM in Europe and is expected to close in the fourth quarter of 2021, subject to regulatory approvals.
Columbia Threadneedle said its core business and global growth strategy would be complemented by the acquisition, which would add a "substantial" presence in the European institutional market.
BMO’s EMEA asset management business will increase Columbia Threadneedle’s assets under management to $671bn (£488bn).
Its assets in the Europe, Middle East and Africa region will be expanded to approximately 40 per cent of total assets as a result.
In the US, certain BMO asset management clients will be given the opportunity to move to Columbia Threadneedle subject to client consent.
Jim Cracchiolo, chairman and chief executive officer, Ameriprise Financial, said: “BMO’s EMEA asset management business will be a great addition to Columbia Threadneedle that will deliver meaningful value for clients and our business.
“This strategic acquisition represents an important next step as we expand our solutions capabilities, broaden our client offering and deepen our talented team. We are a disciplined acquirer and believe this transaction will build on our track record of successful acquisitions for the benefit of clients and our other stakeholders.”
Ted Truscott, chief executive officer, Columbia Threadneedle Investments, said: “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 organisations. 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, group head, BMO Wealth Management, added: “Columbia Threadneedle Investments is a strong strategic and cultural fit for our EMEA asset management business and is well positioned to take it to the next level of growth by extending its reach, scale and investment capabilities.”
Ruth Gillbe is a freelance reporter for FTAdviser