01/10 Japan's Nikko Asset Management seals alliance with DBS Bank

SINGAPORE (Kyodo) -- Japan's Nikko Asset Management Group and Singapore's DBS Bank Ltd have struck an alliance deal that will create Asia's largest regional asset management firm, the two companies said Friday in a joint statement.

Under the deal, Nikko Asset Management Group has acquired DBS Bank's subsidiary in Singapore, DBS Asset Management, for S$137 million Singapore dollars (US$104 million).

DBS Bank has in turn acquired a 7.25 stake in the expanded Nikko Asset Management Group, forming a strategic alliance between the two companies.

The deal will boost the assets managed by Nikko Asset Management Group by US$7.9 billion to over US$165 billion, propelling it as the largest regional asset manager headquartered in Asia.

The Nikko Asset Management Group's subsidiary in Singapore will merge with DBS Asset Management to become Nikko Asset Management Asia, a company that will offer investment management in Asian equities and Asian fixed income.

As part of the deal, the Japanese firm will own a 30 percent stake in Hwang-DBS Investment Management Berhad and a 51 percent stake in Asian Islamic Investment Management Sdn. Bhd, both in Malaysia, and 100 percent of DBS's Hong Kong subsidiary.

Nikko's investment products can be distributed throughout DBS' network of core markets in the region.

(Mainichi Japan) October 1, 2011

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