Nikko AM to acquire DBS Bank’s asset management arm
Tokyo-based Nikko Asset Management has announced it will expand into the Singapore market with the acquisition DBS Asset Management, the investment management arm of DBS Bank.
In return, DBS Bank will take a 7.25 per cent stake in Nikko Asset Management to become a strategic minority shareholder in the company.
As part of the arrangement, Nikko Asset Management and DBS Bank will enter into a non-exclusive distribution agreement through which Nikko’s investment products can be distributed through DBS’ networks in core Asia-Pacific markets.
This transaction will add US$7 billion in assets under management to Nikko and broaden the firm’s distribution capabilities in Asia.
This transaction follows the recent agreement for Nikko Asset Management to acquire the Australian and New Zealand investment management firm Tyndall Investments.
As a result of these agreements, Nikko Asset Management estimated it would add approximately US$32 billion of assets under management (AUM) to its books, bringing the firm’s total AUM to more than US$150 billion.
It is expected that the two transactions will close during the first quarter of 2011.
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