AXA Investment Managers agreed to purchase Framlington Group for about $342.5 million in cash, said Sam Yuide, an AXA spokeswoman. The firm will acquire Framlington from HSBC Holdings and Comerica, which own 51% and 49% of the firm, respectively. Munder UK, a unit of Comerica subsidiary Munder Capital Management, holds Comerica's stake in Framlington. Framlington, which had %A3;4.5 billion ($7.9 billion) in assets under management as of June 30, will operate as AXA Framlington. The deal is expected to close in the fourth quarter, and the sale remains subject to U.K. regulatory approval, Ms. Yuide said. It will be financed internally by AXA Group, AXA Investment Managers' parent.
Robert Kyprianou, global head of securities investment management at AXA Investment Management, will assume the additional post of CEO at AXA Framlington. Framlington does not currently have a CEO, Ms. Yuide said; former CEO Peter Chambers left the firm earlier this year. It is too early to say whether there will be layoffs at Framlington, Ms Yuide said. Dan De Belder, a Framlington spokesman, could not comment by press time.
In a joint news release, AXA Investment Managers CEO Nicolas Moreau said Framlington's "strong equity capability provides a significant enhancement to our multispecialist model," and AXA Investment Managers "will preserve the strength and independence of Framlington's fund managers."
HSBC spokesman Richard Lindsay did not return a call by press time seeking comment.