The French asset manager Amundi (EPA:AMUN) has agreed to buy UniCedit’s (BIT:UCG) asset management business, Pioneer Investments, for 3.6 billion euros in an attempt to extend its reach in Europe.

“The deal is a positive for all the parties involved. UniCredit raises some money and Amundi boosts its market presence,” said Ion-Marc Valahu, fund manager at Clairinvest on Monday.

The Italian bank’s sale of Pioneer Investments will increase its capital adequacy ratio by an estimated 0.78 percentage points. It will also receive dividend payment of 315 million euros when the deal is expected to close in the first half of 2017.

“Pioneer Investments will reinforce Amundi’s product expertise, broaden its distribution channels and networks, and generate significant synergies. It confirms Amundi’s position as a clear European leader in asset management, in terms of size and profitability” said Amundi’s chairman and Credit Agricole’s deputy CEO, Xavier Musca.

This move comes following increased scrutiny of the Italian bank UniCredit. The sale of Pioneer and the bank’s restructuring plan coincide with the news that Italian Prime Minister Matteo Renzi resigned last week following the ‘no vote’ in the referendum on constitutional reform he had backed.

Unicredit has made a number of sales in recent years. The Italian bank has also sold a 10% stake in Bank Pekao SA and a 30% stake in FinecoBank SpA.

This latest deal is one full of hope and potential for both parties.

“The acquisition of Pioneer Investments is a major step to anchor Amundi as the European leader in asset management. This acquisition will reinforce Amundi’s industrial model and will benefit our clients whilst creating significant value for our shareholders.” said chief executive Yves Perrier.

Amundi’s shares were up 5.87 per cent at €50.17 in morning trade in London. UniCredit was up 2.96 per cent to €2.57.