The Commonwealth Bank of Australia (CBA) has revealed plans to sell its Colonial First State Global Asset Management (CFSGAM) unit.
The bank will sell the asset management business to the Mitsubishi UFJ Trust and Banking Corporation (MUTB), the banking arm of the world’s largest financial services group by assets.
The deal for CFSGAM, which is referred to as First State Investments outside of Australia, has been valued at AU$4.13bn (US$2.93bn).
“CFSGAM is a high quality business that has achieved strong growth under CBA’s ownership for over 18 years,” stated Matt Comyn, CEO of the Commonwealth Bank.
“MUTB is one of the largest asset managers in Japan, with a long history and deep capabilities. We believe that CFSGAM’s clients and employees will benefit from MUTB’s supportive long-term ownership.”
“Today’s announcement represents another important milestone in CBA’s strategy to focus on its core banking businesses and to create a simpler, better bank,”
“The sale of CFSGAM to MUTB represents significant value for CBA shareholders and is a positive outcome for CFSGAM clients and employees.”
CFSGAM manages AUS$213bn (US$151.12bn) worth of assets for financial institutions, pensions funds, and financial advisers, ABC News claims.
“We are delighted that CFSGAM, a highly distinguished, diverse and growing asset manager, is joining our group,” noted Mikio Ikegaya, President and CEO of the Mitsubishi UFJ Trust and Banking Corporation.
“We expect CFSGAM will continue to deliver leading investment solutions to its existing global client base.”
“We also believe CFSGAM’s highly seasoned investment teams and competitive product line-ups will enable us to deliver new investment opportunities to our clients. We look forward to welcoming the full CFSGAM team to our group.”