Royal Philips Electronics, Amsterdam, reached agreements in principle to sell some internal asset management and administration units related to its Dutch pension fund to Merrill Lynch and Hewitt Associates, respectively, according to a news release from the three companies. The assets involved would comprise a portion of Philips Pensions Competence Center, Eindhoven, Netherlands. Terms were not disclosed.
Merrill Lynch Investment Managers would manage $16 billion in assets for the Dutch Philips Pension Fund. Philips had about $17.15 billion in Dutch pension assets as of Dec. 31, according to the company's annual report. It is understood by sources close to the deals that Merrill Lynch will manage roughly $10.5 billion in fixed-income assets and about $5.5 billion in equities. Merrill Lynch's deal with Philips would include a seven-year contract.
Hewitt would purchase the Dutch pension administration business that is part of PPCC and would acquire all the stock of Philips Pension Management subsidiary.
Putnam Lovell NBF Securities assisted Philips with both deals.
