Aegon U.K. announced Tuesday it would acquire BlackRock U.K.'s defined contribution record-keeping business.
Terms of the deal were not announced. “The transaction is subject to customary closing conditions” as well as regulatory and court approval, Emma Phillips, a U.K.-based BlackRock spokeswoman wrote in an e-mail. “This is expected to happen in the middle of 2017.”
The combining of the BlackRock U.K. and Aegon U.K. defined contribution record-keeping operations will create a business with approximately £30 billion ($43.8 billion) in assets, according to a joint news release issued Tuesday. The BlackRock component will account for about £12 billion.
The news release said the BlackRock record-keeping business serves 350,000 customers. Information about Aegon U.K.'s DC record-keeping business was unavailable. Neil Cameron, a spokesman for Aegon, did not respond to requests for information by press time.
A BlackRock executive, Paul Bucksey, will be appointed managing director of the combined record-keeping businesses at Aegon. Mr. Bucksey is currently head of BlackRock DC in the U.K., Ms. Phillips wrote.
The news release said BlackRock will remain in the U.K. defined contribution arena through its DC investment management business.
“The combined strength and breadth of expertise makes us a compelling choice,” Adrian Grace, CEO of Aegon U.K., said in the news release.
”With employers demanding additional solutions to meet employees' needs to and through retirement, workplace savings are no longer just about traditional DC pensions,” he added. “This makes it an exciting market and with an expectation it will triple in size over the next 10 years, we are well positioned to take advantage.”