The deal is expected to close in the first half of 2017.

Amundi has agreed to acquire Pioneer Investments, a global asset manager, from UniCredit for an all-cash consideration of €3.5 billion ($3.7 billion).

As part of the deal, Amundi, which currently has more than €1 trillion of assets under management, will form a long-term partnership with UniCredit for the distribution of asset management products.

According to Amundi, the acquisition will create the eighth-largest asset manager globally with €1.3 trillion of AuM, excluding €4 billion of AuM in Poland, while allowing it to expand its institutional client base, enhance and diversify its global product offering and benefit from a US platform.

The deal is expected to create “significant value” for Amundi shareholders and full-year pre-tax synergies – cost cuts that occur as a result of a joint venture – are expected to be around €180 million, Amundi said in a statement.

Although the transaction has received the approval of both Amundi's and UniCredit's boards of directors, it is still subject to customary closing conditions, regulatory and antitrust approvals and is expected to close in the first half of next year.

“Pioneer Investments will reinforce Amundi’s product expertise, broaden its distribution channels and networks, and generate significant synergies,” said Xavier Musca, chairman of the board of directors at Amundi.