Merger of Baroda AMC with BNP Paribas AMC completed: Bank of Baroda

Bank of Baroda (BoB) on Monday said that the merger of its wholly-owned subsidiary Baroda Asset Management India Limited (Baroda AMC) with BNP Paribas Asset Management India Private Limited (BNPP AMC) has been completed and the new entity has commenced its operations.
 
In October 2019, BoB had entered into binding agreement with BNP Paribas Asset Management Asia Limited (BNP AM) for merger of Baroda AMC with BNPP AMC (Surviving AMC) and that of BNP Paribas Trustee India Private Limited with Baroda Trustee India Private Limited (Surviving TC).
 
Baroda AMC was in the business of administering and managing mutual fund schemes of Baroda Mutual Fund, while BNPP AMC was in the business of administering and managing mutual fund schemes of the BNP Paribas Mutual Fund, undertaking advisory activities and acting as a portfolio manager.
 
"The merger has been completed and the Surviving AMC and Surviving TC have commenced operations from today i.e. 14th March, 2022," BoB said in an exchange filing.
 
The transaction was without any cash consideration. As per the agreement, BoB and BNP AM will respectively hold a stake of 50.1 per cent and 49.9 per cent in the Surviving AMC. Besides they will, respectively, hold 50.7 per cent and 49.3 per cent stake in the Surviving TC.
 
"AAUM for quarter ended December 31, 2021 for Baroda Asset Management India Limited was Rs 12,769 crore and BNP Paribas Asset Management India Private Limited was Rs 9,116 crore," the filing said.
 
At the time of signing of agreement, the companies had said that the strategic alliance would allow them to leverage each other's strengths to offer products specially designed for retail and institutional clients in India.
 
Besides, it would lead to stronger balance sheet and net worth to meet capital needs for future growth and expansion, distribution relationships with different types of intermediaries to widen the coverage and outreach to customers, and operational efficiencies and scale to grow the business, they had said.
 
Shares of BoB on Monday ended 2.39 per cent higher at Rs 106.90 on the BSE.

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