BMO Financial Group April 12 reached a definitive agreement with Ameriprise Financial, Inc. to sell the entities that represent its EMEA Asset Management business, as it was informed by the company.
Under terms of the agreement, Ameriprise Financial will purchase BMO's EMEA asset management business for £615 million or approximately CAD $1,089 million, in an all-cash transaction, subject to regulatory approvals, and other customary closing conditions.
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.
As part of the transaction, BMO and Columbia Threadneedle will also establish a strategic relationship to offer BMO's North American Wealth Management clients opportunities to access a wide range of Columbia Threadneedle investment management solutions, including Responsible Engagement Overlay, ESG and Alternatives, upon close.
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.
BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $973 billion BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.
