|
| Sumitomo Trust to buy Citi's Japanese asset mgmt arm |
| Press Trust of India / Tokyo/New Delhi Jul 30, 2009, 19:51 IST |
|
Sumitomo Trust and Banking Co will acquire Nikko Asset Management, the Japanese asset management arm of Citigroup, for about 112.4 billion yen.
The acquisition is expected to be completed by October 1, Sumitomo Trust said in a statement today.
"The Sumitomo Trust and Banking Co has reached an agreement today with Nikko Citi Holdings Inc and another shareholder to acquire the shares (up to 98.55 per cent of all outstanding shares) of Nikko Asset Management Co, subject to regulatory approvals and permits," the statement said
Estimated to be worth 112.4 billion yen, the deal would create one of the largest asset management groups in Japan. Sumitomo Trust has assets under management worth 25.7 trillion yen while NikkoAM has 8.8 trillion yen.
"The acquisition of NikkoAM will increase the group's total AUM to approximately 34.5 trillion yen, creating one of the country's largest asset management groups with a menu of services that addresses the needs of both institutional investors and, through sales of investment trusts, personal investors as well," the statement said.
Nikko Citi Holdings and NAM Holdings have 58.1 per cent and 37.4 per cent shareholding, respectively, in NikkoAM.
Grappling with the financial turmoil, Citi has been selling many of its assets worldwide as part of efforts to shrink the balance sheet.
"With the previously announced sales of our brokerage and trust banking businesses in Japan, this transaction marks another milestone in the implementation of our Citicorp/Citi Holdings strategy," Citi CEO Vikram Pandit said in a separate statement.
"We can now shift our focus from reshaping our franchise in this very important market to building our core businesses and better serving clients," Pandit added.
Sumitomo noted that it would support NikkoAM's listing plan as one of the largest independent asset management institutions in Asia.
"Even after the listing of NikkoAM, both Sumitomo Trust Banking and NikkoAM , as strategic business partners, will endeavor to further enhance each other’s corporate value," it added.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
