(Dec 8): Allianz SE has temporarily halted talks with Amundi SA over combining its Allianz Global Investors (AGI) asset management arm with the French company.

The two sides were unable to agree on a deal structure, including control of the combined entity, according to a person with knowledge of the matter, who asked not to be identified because the discussions are private. The Financial Times reported earlier that the discussions were put on hold.

The “asset management business line is strategically integral to Allianz,” a spokesperson for the Munich-based financial services company said in an email, and it would only consider inorganic growth opportunities that increase its exposure to asset management. He declined to comment beyond the statement. 

An Amundi spokesperson declined to comment.

Allianz and Amundi have been holding talks on-and-off for several months about a deal for the unit, Bloomberg reported earlier this week. AGI had €555 billion (US$587 billion, or RM2.59 trillion) of assets under management at the end of June, according to its website.

Rising costs and pressure on fees are prompting asset managers to seek greater scale. Many of the biggest players in Europe are still owned by banks or insurers, and often lack the heft to compete with US fund houses and alternative investment firms that have enjoyed breakneck growth in recent years.

Allianz has its capital markets day on Dec 10, during which executives, including chief executive officer Oliver Baete, will provide updates on mid-term strategy and targets.

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