Tata Asset Management is in talks to buy out the assets of JP Morgan's domestic mutual fund business, said two people familiar with the discussions. If the deal goes through, JP Morgan will be the seventh global financial services firm to exit the Indian mutual fund industry in the last three years.
In response to an ET query on the matter, a Tata Mutual Fund spokesperson said, "You would appreciate that as a group practice, we do not comment on market speculation".
JP Morgan declined to comment. Tata is said to be negotiating to pay less than 1% of JP Morgan Mutual Fund's assets under management (AUM) of close to Rs 6,800 crore as on January 30. This could not be confirmed independently. Tata Asset Management has assets worth Rs 29,000 crore in the period. At 1%, JP Morgan Mutual Fund will be valued at closed to Rs 68 crore. The valuation under negotiations is lower than that of previous domestic transactions in the industry which have happened between 2% and 4% of the target's AUM.
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