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Baroda Asset Management India, a wholly-owned subsidiary of Bank of Baroda, has announced its merger with BNP Paribas Asset Management India.
As per sources, Bank of Baroda and BNP Paribas Asset Management Asia have entered into binding agreements for the merger. The transaction also includes merger of BNP Paribas Trustee India with Baroda Trustee India.
The strategic alliance allows both the companies to leverage each other’s strengths to offer products specially designed for retail and institutional clients in India.
BoB also said there is no cash consideration in the proposed transaction. Post-merger, Bank of Baroda will hold 50.1% stake in the resulting AMC, whereas BNP Paribas Asset Management Asia will hold 49.9% of the paid-up share capital of the merged AMC. The shareholding of BoB and BNP Paribas in the merged trustee company would be 50.7% and 49.3% respectively.
The average asset under management (AAUM) of Baroda AMC stood at Rs 11,319.69 crore and AAUM of BNP Paribas Asset Management India was Rs 10,072.60 crore (including PMS/advisory) as of March 31, 2019.