France's Crédit Agricole has abandoned plans to create a €655bn ($850bn) asset management giant in partnership with Italy's SanPaolo IMI after being forced to dissolve its Italian fund management business.

Crédit Agricole Asset Management bought a 65% stake in Nextra, the Italian asset manager, from Italy's Banca Intesa in December 2005, adding assets of €100bn. The operation was renamed Crédit Agricole Asset Management Italy.