AMP Capital has announced plans to sell its global equities and fixed income business to investment powerhouse Macquarie Asset Management in a deal worth $185 million.
The binding agreement includes a cash payment of $110 million this financial year and an additional $75 million that could be paid over the first two years, subject to meeting revenue targets.
AMP Capital’s equities business manages around $60 billion internally as well overseeing funds for a number of external institutional and retail clients.
AMP Capital has agreed to sell its global equities and fixed income business to Macquarie.Credit:Getty
The sale is part of AMP’s strategy to spin off and separately list AMP Capital’s private market business, which includes unlisted assets such as infrastructure and property, under fresh branding following months of failed takeover negotiations with US firm Ares.
Acting AMP chief James Georgeson said the group’s portfolio review conducted last year found AMP’s global equities business had “strong investment capabilities… but needed greater scale and broader distribution reach to compete effectively”.
The deal will transform Macquarie Asset Manager into a $720 billion powerhouse. MAM head Ben Way said his team will work closely with AMP to integrate the business.
“It cements Macquarie’s position as the leading investment manager in Australia by [assets under management] and allows us to further diversify our client offering and bring new opportunities to clients joining us from AMP Capital,” Mr Way said.
More to come
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