PARIS (Reuters) - Amundi, Europe's largest asset manager, said on Tuesday it had agreed to sell its U.S. business to Victory Capital ( VCTR ) in exchange for a 26% stake in the U.S. company.

Amundi said there was no cash payment involved in the deal.

"The proposed transaction with Victory Capital ( VCTR ) is a unique opportunity to strengthen our presence in the U.S., while becoming a strategic shareholder in a reputable U.S.-based asset management firm with an excellent track record of growth," said Amundi CEO Valerie Baudson.

Victory Capital ( VCTR ) has a market capitalisation of around $2.7 billion, and has $170 billion in total assets under management.

The deal will also see Amundi and Victory Capital ( VCTR ) form 15-year reciprocal distribution agreements.