Manulife Financial agreed to acquire Standard Life Canada — Standard Life’s Canadian money management and other businesses — for C$4 billion (US$3.67 billion).
Both firms, in separate news releases Wednesday, said Manulife Financial also will distribute Standard Life Investments’ funds in Canada, the U.S. and Asia as part of the deal.
The deal, expected to close in the first quarter of 2015, would add C$5.4 billion in mutual fund assets under management to Manulife Financial, raising its total mutual fund AUM to C$33 billion, Manulife said. Manulife Financial had $263 billion in worldwide AUM as of Dec. 31, according to Pensions & Investments data.
Also on Wednesday, the C$214.7 billion Caisse de Depot et Placement du Quebec, Montreal, said it would make a C$500 million equity investment in Manulife Financial to help it finance the acquisition of Standard Life Canada. Caisse, which manages assets for Quebec public pension and other provincial funds, now has a more than C$1 billion stake in Manulife.
Along with Standard Life’s Canadian money management business, Manulife will acquire Standard Life’s Canadian individual and group insurance, and long-term savings and retirement businesses.
Standard Life Investments will continue operating its Montreal, Toronto and Calgary offices during the transition, said Montieth Illingworth, Standard Life spokesman. Standard Life will then open a new office in Toronto that will not be part of Manulife. Mr. Illingworth said SLI’s current Canadian management team will remain in place until Manulife takes control of the business.
In its news release, Manulife said the “vast majority” of Standard Life positions in Quebec would be retained, a senior leadership team would be based in the province, and “we fully expect to have more jobs in Quebec than Standard Life has at present.”
A Manulife spokesman could not be reached for further information.