Franklin Templeton Mutual Fund is planning to acquire Deutsche Mutual Fund, reports Business Standard.
The report said that
both the parties have completed the due-diligence process. Also, the report
states that DWS AMC is valued at 3-4% of its AUM i.e. not less than Rs. 680
crore.
A Franklin Templeton spokesperson said that they would not comment on market speculation.
Franklin Templeton Mutual Fund manages AUM of Rs. 63,643 while DWS AMC manages Rs. 22,670 crore as on December 31. If the deal goes through, Franklin Templeton Mutual Fund will overtake SBI Mutual Fund to become the sixth largest AMC in terms of AUM.
The industry has been going through a consolidation phase. In 2013, HDFC Mutual Fund and SBI Mutual Fund bought schemes of Morgan Stanley and Daiwa respectively. In May 2014, Birla Sun Life Mutual Fund bought schemes of ING Mutual Fund which added Rs. 1,100 crore to its kitty. Recently, Kotak Mutual Fund acquired the schemes of PineBridge Mutual Fund.
