Amundi said on Tuesday it had signed a memorandum of understanding to merge its US operations with Victory Capital, under which Europe's largest asset manager would hold a 26.1% stake in Victory Capital.

Amundi US would be merged with Victory Capital in exchange for Amundi taking a 26.1% stake in Victory Capital, with no cash payment, the company said in a statement.

"The proposed transaction with Victory Capital is a unique opportunity to strengthen our presence in the United States, while becoming a strategic shareholder in a reputable US asset management company," said Amundi CEO Valérie Baudson in a statement.

(Report Sudip Kar-Gupta, written by Augustin Turpin, edited by Blandine Hénault)