Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / News/  Pramerica Asset Managers acquires Deutsche’s India asset management business
BackBack

Pramerica Asset Managers acquires Deutsche’s India asset management business

The combined business will enable Pramerica to expand its investment management expertise, distribution platform and product portfolio

Premium


Mumbai: Pramerica Asset Managers Pvt. Ltd said on Friday that it had signed a definitive agreement with Deutsche Bank AG to acquire the latter’s India asset management business.

The combined business will enable Pramerica AMC to expand its investment management expertise, distribution platform and product portfolio significantly in India, the money manager said in a statement.

The transaction is subject to approval by the Securities and Exchange Board of India and the Competition Commission of India.

Pramerica AMC did not disclose the value of the transaction. Prudential Financial Inc., a US-based financial services company, owns and is the sponsor of Pramerica Asset Managers.

On 17 June, Mint reported that Pramerica AMC was buying out Deutsche Asset Management (India) Pvt. Ltd, a money manager with 10 times the asset size of Pramerica, for almost 400 crore.

Deutsche Asset Management was formed in 2003, and is the second-largest foreign-owned asset manager in the country, the statement said. In the first quarter of the current fiscal year, the business had an average 20,720 crore ($3.2 billion) of assets under management.

“The strong track record of Deutsche Bank’s asset management business in India, its talented leadership team, and deep relationships with institutional clients and distribution partners, perfectly complement the sales, investment and product capabilities of our existing business," said Glen Baptist, chief executive officer of Pramerica International Investments.

Once the transaction is completed, Pramerica will have the scale and platform to make its investment strategies available to clients across India and put Pramerica within sight of the top 10 asset managers in the country, he said.

Deutsche Asset Management is the fourth foreign-owned fund house to leave India since December 2013, when Morgan Stanley Investment Management Co. Ltd had its schemes acquired by HDFC Asset Management Co. Ltd. In May 2014, Birla Sun Life Asset Management Co. Ltd acquired the schemes of ING Investment Management (India) Pvt. Ltd and in September, Kotak Mahindra Asset Management Co. Ltd purchased the assets of PineBridge Investments Asset Management Co. Ltd.

Pramerica AMC has a presence in 19 cities across the country including branches in Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata and Pune.

Pramerica AMC’s other interests in India include a proposed joint venture partnership with Dewan Housing Finance Corp. Ltd, which recently received approval from Sebi, and is expected to be completed shortly.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Swaraj Singh Dhanjal
" Based in Mumbai, Swaraj Singh Dhanjal is responsible for Mint’s corporate news coverage. For the past eight years he has been writing on the biggest deals in private equity, venture capital, IPO market and corporate mergers and acquisitions. An engineer and an MBA, he started his journalism career in 2014 with Mint. "
Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 07 Aug 2015, 03:26 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie