Pioneer deal off due to absence of a “workable solution”

The merger of Pioneer Investments and Santander Asset Management has been called off, according to Pioneer’s owner Unicredit.

The potentially game-changing deal, which appeared close to completion last year, had run into a number of problems. Santander’s executive chairman Emilio Botín, died in September 2014 just before the initial deal was agreed and Federico Ghizzoni, UniCredit’s chief executive, was ousted in May last year.

The UK’s vote to leave the EU also added to concerns about the outlook for the €5.3 billion deal.

A statement by Unicredit said: “In the absence of any workable solution within a reasonable time horizon, the parties have concluded that ending the talks was the most appropriate course of action.”

Unicredit is now exploring other options for Pioneer Investments’ stakeholders, including an initial public offering. The Italian bank said that this would be done to accelerate growth of its investment management division.