Japan's Orix to buy Robeco from Rabobank
Rabobank to retain a 9.99% stake in Robeco; gain a 2% stake in Orix
By Douglas Appell | February 19, 2013 4:02 am
Orix Corp., a Tokyo-based financial services conglomerate, will acquire money management firm Robeco Groep from Rabobank, the companies announced Tuesday.
Orix will acquire a 90.01% stake in Robeco for €1.9 billion (US$2.58 billion), paying with a combination of cash and treasury stock, confirmed spokesmen for Orix, Rabobank and the Brussels-based money manager.
The purchase, expected to be completed within six months, is a strategic acquisition, making Robeco the platform for Orix's plans to expand its financial services operations globally, said Haru Yamada, Tokyo-based spokesman for Orix.
Orix plans further expansion, via both organic growth and possible acquisitions, Mr. Yamada said.
The agreement includes a strategic alliance between Rabobank and Orix. The terms of the deal call for Rabobank to retain a 9.99% stake in Robeco, while payment will include €150 million of Orix treasury stock, giving Rabobank a roughly 2% stake in the Japanese company.
Under the deal, Rabobank will continue to “cooperate in maintaining and expanding Robeco's business platform,” according to a joint news release Tuesday.
Orix will have board representation, but is determined to maintain Robeco's autonomy and the independence of its money management operations, Mr. Yamada said.
The deal calls for the asset management businesses under Robeco to continue operating under their existing brand names. Roderick Munsters will remain CEO of the firm, reporting to Tokyo.
The news release noted that Robeco ended 2012 with €189 billion in assets under management, up 26% from €150 billion at the end of 2011, buoyed by record net inflows of €18.4 billion. Net profit for the latest year came to €197 million, up 47% from €134 million for 2011.