Deutsche Bank had announced that it has sold all the schemes of its asset management arm to Pramerica Mutual Fund.
In a press release, Deutsche MF said, “Deutsche Bank Group has entered into an agreement to sell its India asset management business to Pramerica Asset Managers Pvt. Ltd. subject to customary closing conditions and regulatory approvals.”
Ravi Raju, Head of Deutsche Asset & Wealth Management, Asia Pacific said," Deutsche Bank Group’s asset management business was established in 2003, and is now the second largest foreign asset manager in India. We have built a strong brand with a well-respected investment and coverage team. This solid foundation will be passed on to Pramerica, which is an internationally respected asset manager with broad product capabilities and expertise. We are confident that with Pramerica’s global footprint and track record of integrating and working with local partners in key markets, the business will continue to perform well following the integration. We are committed to working with Pramerica to ensure a smooth transition for clients, staff and other stakeholders.
This acquisition has added Rs. 20,720 crore assets to the kitty of Pramerica Mutual Fund. Currently, Pramerica is managing assets of Rs.2125 crore as on June 2015.
A few media reports suggest that the deal has finalized for nearly Rs.400 crore.
The industry has been going through a consolidation phase. Last year, Kotak MF and Birla Sun Life MF had bought all the schemes and portfolio management accounts of Pinebridge MF and ING MF respectively. In December 2013, HDFC Mutual Fund acquired schemes of Morgan Stanley. Earlier, Japan based AMC, Daiwa Mutual Fund sold its schemes to SBI Mutual Fund.
