Nikko AM and DBS Bank completed the agreement to merge DBS Asset Management Ltd and Nikko AM.
The transaction boosts Nikko AM's assets under management by US$7.9 billion to over US$165 billion and establishes Nikko AM as the largest regional asset manager headquartered in Asia.
The agreement involves Nikko AM acquiring DBSAM for S$137 million or US$104 million.
DBS has in turn acquired a 7.25 per cent interest in the enlarged Nikko AM, forming a strategic alliance between the two companies.
"We look forward to working with DBS to bring innovative Nikko AM investment products to their customers across the Asia-Pacific region," he said in announcing the new partnership here," said Timothy McCarthy, chairman and chief executive officer of Nikko AM.
Meanwhile, Sim S. Lim, DBS Singapore Country Manager and DBSAM chairman said: "With the economic gravity shifting to Asia, DBS is focused on offering our customers a global investment strategy with an Asian bias."
As part of the alliance, DBS and Nikko AM have entered into a non-exclusive distribution agreement. This means Nikko AM�s investment products can be distributed throughout the DBS network of core markets in the region.
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