BMO Sells EMEA Asset Management Unit to Ameriprise Financial
Posted on 04/12/2021
Bank of Montreal (BMO Financial Group) agreed to sell its Europe, Middle East, and Africa asset-management unit to Ameriprise Financial Inc. for 615 million GBP (US$ 847 million). This is an all-cash transaction, subject to regulatory approvals, and other customary closing conditions. In 2020, BMO was seeking out options for its asset management operations outside of North America.
Separately, in the U.S. the transaction includes the opportunity for certain BMO asset management clients to move to Columbia Threadneedle Investments, subject to client consent. 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.
“This transaction is consistent with BMO’s focus on long-term profitability as a leading North American bank and wealth manager, and enables us to focus our resources where we have a competitive advantage and are well-positioned to deliver growth and accretive returns,” said Joanna Rotenberg, Group Head, BMO Wealth Management in a press release. “We will continue to invest in our diversified North American Wealth businesses, including our Canadian asset management business, to provide an unrivalled experience for our clients as their needs change.”
The transaction is expected to close in the fourth quarter of calendar 2021 and both BMO and Columbia Threadneedle are working to achieve a smooth transition.
In connection with the transaction, BMO Capital Markets and Morgan Stanley Canada Limited acted as financial advisors and Norton Rose Fulbright LLP acted as legal counsel to BMO. Linklaters LLP acted as legal counsel to Ameriprise Financial.