Ping An Insurance of China reached a tentative agreement to acquire 50% of Fortis Investments for €2.15 billion ($3.36 billion), according to an announcement from both companies. The newly created firm would be called Fortis Ping An Investments. Senior management and business strategy at Fortis Investments will be unchanged.
The transaction would allow both companies to significantly accelerate their asset management businesses globally, Fortis spokeswoman Melanie Dunn said. The transaction opens up a huge market for us, she added. Were really becoming a global player. The main thing for us is weve always said that our asset management business needed size and scale, and now we have acquired the business of ABN AMRO, which puts us in a much stronger position already, Ms Dunn said. Fortis acquisition of ABN AMRO Asset Management, which won regulatory approval earlier this year, raised assets under management to €245 billion.
The deal helps Ping An raise its asset management capabilities in China, according to the release. These benefits will considerably accelerate Ping Ans commitment to the development of a highly competitive global financial services platform, said Peter Ma Mingzhe, chairman and CEO of Ping An, in the release. Ping An and Fortis Investments are scheduled to extend exclusive discussions on the deal until April 15. The transaction is subject to final agreements and regulatory approvals.