AMP buys into Italy

AMPhas moved into what it has identified as one its three priority markets in Europe, with the acquisition of Italian wealth management business Commerzbank Asset Management Italia (CAMI).

CAMI has 26 offices across Italy sporting a network of 198 advisers, and distributes third-party and in-house investment and financial services product through its tied adviser network. The company began its life in Italy in 2000 as an initiative of German parent Commerzbank AG.

AMP chief executive Paul Batchelor says the acquisition of the fledgling company is a good fit, despite AMP’s openly declared strategy of keeping costs down.

“While our short-term focus remains on cost control, capital management and our UK financial services business, we also remain alert to opportunities that fulfil our long-term goal of building an international wealth management business,” he says.

Batchelor says the acquisition of CAMI will dovetail in with the European operations of AMP’s funds management division,Henderson Global Investors.

The other two priority markets AMP has identified are those of Germany and Spain.

CAMI is expected to deliver profits only in 2005 for the funds management giant.

The company was bought for $133 million, and AMP says it will be investing a further $83 million in the company for the next four years.