Allianz Global Investors will acquire UOB's asset management business in eight Asian markets
Source: Global Market Bulletin
Allianz Global Investors has agreed to acquire United Overseas Bank's asset management business for approximately $430 million, as the German firm seeks to expand its footprint in Asia.
United Overseas Bank said on Wednesday that under the agreement, UOB and Allianz Global Investors will establish a long-term distribution partnership, thereby offering UOB's clients a wider range of investment solutions.
UOB stated that it expects to gain approximately 330 million Singapore dollars (US$257.4 million) in pre-tax profit from the deal, excluding one-off transaction costs. This move is part of the bank's efforts to focus on its strategic priorities.
As of the end of December, UOB Asset Management managed assets worth about 42 billion Singapore dollars. Allianz Global Investors, the asset management arm of Allianz Group, said on Wednesday that the transaction will bring its assets under management for clients in the Asia-Pacific region to more than 170 billion euros ($19.604 billion).
The eight markets involved in the deal are Singapore, Brunei, Indonesia, Japan, Malaysia, Taiwan region of China, Thailand, and Vietnam. Allianz Global Investors stated the deal will provide the firm access to high-growth markets such as Thailand and Vietnam, while expanding its scale in existing markets like Singapore and Taiwan.
The deal is expected to be completed in 2027 but requires regulatory approval.
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