MUNICH (Reuters) – Allianz and Amundi have halted discussions about combining their asset management businesses into a European investment giant that would manage nearly 2.8 trillion euros in assets, a company said. source close to Allianz.

Germany’s Allianz is examining options for its Allianz Global Investors unit, including a possible merger or partial sale of the division, Reuters reported in October. Asset manager Pimco, which Allianz also owns, is not part of the discussions.

Allianz and Amundi, Europe’s largest asset management company, based in Paris and owned by Crédit Agricole, had talks about a tie-up for some time, but have since been broken off, the source said.

It is unclear whether discussions could resume at a later stage.

An Amundi spokesperson said on Sunday that the company was not in discussions with Allianz and declined to make further comment.

AllianzGI, which manages 560 billion euros in assets according to its website, could be valued at more than 4 billion euros, including debt, Reuters reported in October.

The Financial Times, citing people familiar with the matter, reported on Saturday that one of the main sticking points between the two sides had been the structure of a possible merger and the question of who would control a extended group.

Allianz’s thoughts on the future of its Global Investors arm follow BNP Paribas’ offer to acquire AXA Investment Managers for more than €5 billion, a deal bankers had expected it gives rise to other redemptions of this type. Amundi was also in the running for the unit, Reuters reported.

Claire-Marie Coste-Lepoutre, Allianz’s chief financial officer, said last month that the insurer liked its current structure and had no plans to reduce the contribution of its asset management activities to band.

(Reporting by Alexander Hübner in Munich; by Kate Entringer)

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