PARIS, April 16 (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.

The move, aimed at boosting Amundi's access to the world's

biggest financial market, will allow the French asset manager's

clients to access a larger pool of products.

In exchange, Victory Capital ( VCTR ) will be able to serve a

greater number of clients inside and outside its home country,

as the deal involves 15-year reciprocal distribution agreements.

Amundi, which did not disclose the implied value of Victory

Capital's ( VCTR ) equity generated from the transaction, said the deal

involved no cash payment.

As a new reference shareholder of Victory Capital ( VCTR ), Amundi

will have representatives on the board of the U.S. asset

manager, it said.

"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 ), whose history traces back to 1894, has a

market capitalisation of around $2.7 billion and has $170

billion in total assets under management. Amundi, which is

controlled by French bank Credit Agricole SA, has more than $2

trillion of assets under management.

The reciprocal distribution agreements between the two

companies will allow Amundi to offer Victory Capital's ( VCTR ) products

outside the United States, while Victory Capital ( VCTR ) will offer

Amundi's non-U.S. made products in America.