Sundaram Asset Management has received regulatory approval to acquire Principal AMC. The two asset management companies can now proceed to complete the transaction which was first announced in January 2021.
"Both companies are pleased to report the receipt of final regulatory approvals for the purchase from CCI and SEBI," Sundaram MF said in a press release.
Once the acquisition is complete, Sundaram MF is likely to become the 17th largest fund house in India. As per the average AUM of September quarter, Sundaram is at the 18th spot with an AUM of Rs.33,370 crore. The AUM of Principal MF was Rs.8,930 crore in the same quarter.
Post deal closure, the schemes of Principal MF will be merged with those of Sundaram MF or renamed as Sundaram schemes. "All investors and distributors of Principal India schemes will become investors/distributors of Sundaram," the release stated.
Investors of Principal MF schemes will be provided an 'exit load free' window to redeem their investment if they want to, Sundaram MF said.
"We endeavour to retain and absorb Principal India’s distribution franchise with minimal disruption to their commercial terms. The existence of the same back office service provider (RTA) is expected to smoothen the transition for existing customers and distributors," said Sunil Subramaniam, MD of Sundaram AMC.
