Legg Mason, a US-based asset manager, has agreed to acquire Martin Currie, a UK-based active international equity specialist.
Subject to regulatory approval, the transaction is expected to complete during the fourth quarter of 2014.
As part of the agreement, Legg Mason Australian Equities (LMAE) with US$2.5 billion AUM along with a 14 member team will become part of Martin Currie.
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Martin Currie will become a wholly-owned affiliate of Legg Mason along with Brandywine Global, ClearBridge Investments, The Permal Group, QS Investors, Royce & Associates and Western Asset Management.
The acquisition would expand Legg Mason’s product capabilities in active equity strategies including global equity, global emerging markets, Asian equity, European equity and strategies primarily focused on Japan and China.
The acquisition of Martin Currie will adds significantly to the Legg Mason affiliate range including a 46 member investment team, an alternative product range, scalable and distinctive investment philosophy as well as a fundamental research-driven investment process.
Financial terms of the deal were not disclosed.
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By GlobalDataAs of the end of June, Martin Currie had $9.8 billion (£5.77 billion) in assets under management. It manages portfolios for financial institutions, charities, foundations, endowments, pension funds, government agencies and investment funds.
Additionally, the senior management team at Martin Currie has entered into new long-term contracts with Legg Mason related with the transaction.
Joe Sullivan, President and CEO of Legg Mason said, "Martin Currie’s active international equity capabilities fill our largest product gap and are a perfect complement to our existing investment capabilities."
Willie Watt, CEO of Martin Currie, said: "We believe Legg Mason is the ideal strategic partner to grow our business further and will position us as the strategic international equities specialist in one of the most powerful independent investment management companies globally.
"In partnership with Legg Mason we will have efficient access to new markets and client segments through their market-leading and sizeable retail distribution network as well as valuable seed capital which will allow us to be at the forefront of new product innovation," he added.
