Bank Of Baroda and BNP Paribas Merger Plans
Nowadays, consolidating is a common thing in the mutual fund industry. At last, Nippon Life Insurance of Japan AMC merged with Reliance AMC. Now, Bank Of Baroda AMC To Merge With BNP Paribas AMC. Bank of Baroda is a public sector banking and financial service company. On Friday, Barod Asset Management Company has signed a binding agreement with BNP Paribas Asset Management India for a potential merge in their mutual fund business. The move should subject to regulatory approvals.
Baroda Asset Management India Ltd. will merge with BNP Paribas Asset Management Asia Ltd while Baroda Trustee India Pvt. Ltd. should merge with BNP trustee India Pvt Ltd, the bank said in the stock exchange filing.
Merged AMC Stake Allocation Process
After completing the merger progress, Bank Of Baroda will hold up to 50.1 percent of stake in merged AMC. The rest of the stake will hold by BNP Paribas AMC. Moreover, these firms also held the paid-up capital of Merged equity. As of the filing, Baroda AMC will hold 50.7 percent while BNP Paribas will hold 49.3 percent.
As of the report, currently, Bank of Baroda AMC is involved in managing the Baroda MF schemes. At the same time, BNP Paribas AMC serves BNPP Mutual Fund schemes.
As of March 31, 2019, the Baroda AMC has an average asset under management of Rs 11,320 crore. At the same time, BNP Paribas AMC was stood at Rs 10,073 crore.
The joint venture of BOB and BNPPP will allow the officials of these firms to create a strong and more competitive AMC in the Indian mutual fund industry, said by a source.
Bank of Baroda (BOB) is a multinational and public sector banking in India. It offers services such as domestic and forex operations. It was owned by the government of India. Meanwhile, BNP Paribas is the leading corporate bank and one of the largest foreign banks in India.