Ameriprise Financial To Buy BMO's EMEA Asset Management Business For About US$845 Mln

Ameriprise Financial Inc. (AMP) said that it agreed to acquire EMEA asset management business from BMO Financial Group (BMO,BMO.TO) for 615 million pounds or about US$845 million.

Ameriprise noted that the all-cash transaction adds $124 billion of AUM in Europe and is currently expected to close in the fourth quarter of 2021.

Ameriprise expects that the transaction will be accretive in 2023 and will generate an internal rate of return of 20%.

Separately, in the U.S. the transaction includes the opportunity for certain BMO asset management clients to move to Columbia Threadneedle Investments, BMO Financial Group said in a statement. The terms of the U.S. agreement were not disclosed.

Columbia Threadneedle is Ameriprise Financial's global asset management business, overseeing investments for individuals, advisors and wealth managers, as well as institutions.

As part of the transaction, BMO and Columbia Threadneedle will also establish a strategic relationship to offer BMO's North American Wealth Management clients opportunities to access a wide range of Columbia Threadneedle investment management solutions, including Responsible Engagement Overlay, ESG and Alternatives, upon close.

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