May 17 (Reuters) – U.S. insurance plan provider Voya Financial Inc (VOYA.N) said on Tuesday its investment management unit would take over “a substantial majority” of Allianz’s asset management business (ALVG.DE) based in Germany in the United States. .
The announcement comes after Allianz agreed to pay around $6 billion and its US asset management unit agreed to plead guilty to fraud over the collapse of its multi-billion dollar Structured Alpha funds amid market turmoil triggered by the COVID-19 pandemic. Read more
Voya said it has entered into a memorandum of understanding with Allianz Global Investors (Allianz GI), the asset management division of Allianz. Under the terms of the proposed partnership, Allianz GI would obtain a stake of up to 24% in Voya’s investment management business.
Voya said he expects a purchase agreement to be finalized in the coming weeks.
After the deal, Voya’s investment management unit will manage nearly $370 billion in assets, the company said. The planned acquisition will not require any external financing or use of Voya’s excess capital, he added.
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Reporting by Niket Nishant in Bengaluru; Editing by Krishna Chandra Eluri
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