Pramer­ica ac­quires Deutsche's In­dia as­set man­age­ment busi­ness

The Pak Banker - - COMPANIES/BOSS -

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 Rs.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 fi­nan­cial year, the busi­ness had and av­er­age Rs.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, Ban­ga­lore, 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.

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