MUNICH (Reuters) – Allianz (ETR:) and Amundi have paused discussions about combining their asset administration companies right into a European funding large that will handle almost 2.8 trillion euros ($3 trillion) in belongings, a supply near Allianz stated.

Germany’s Allianz has been analyzing choices for its Allianz International Traders unit, together with a attainable merger or partial sale of the division, Reuters reported in October. Asset supervisor Pimco, which Allianz additionally owns, was not a part of the discussions.

Allianz and Paris-based Amundi, Europe’s largest asset supervisor and owned by French financial institution Credit score Agricole (OTC:), have been holding talks a few tie-up for a while however have since stopped, the supply stated. It’s not clear whether or not talks might restart at a future stage.

A spokesperson for Amundi stated on Sunday it was not in discussions with Allianz and declined to remark additional.

AllianzGI, which oversees 560 billion euros of belongings in accordance with its web site, could possibly be valued at greater than 4 billion euros, together with debt, Reuters had reported in October.

The Monetary Instances, citing individuals aware of the state of affairs, reported on Saturday {that a} key sticking level between the 2 sides had been the construction of any mixture and who would have management of an enlarged group.

Allianz’s issues about what to do with AGI observe BNP Paribas (OTC:)’ choice to purchase AXA Funding Managers for greater than 5 billion euros, a transaction that bankers anticipated would spur extra dealmaking. Amundi additionally had been vying for the unit, Reuters reported.

Allianz’s finance chief Claire-Marie Coste-Lepoutre stated final month that the insurer appreciated its present set-up and didn’t goal to scale back the contribution that its asset administration companies make to the group.

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