Allianz Global Investors has entered exclusive negotiations to acquire the asset management business of Singapore’s United Overseas Bank (UOB), reported Bloomberg.
The insurer-owned fund manager has moved ahead of competing bidders and is now seen as the leading contender for UOB Asset Management, sources cited by the news agency said.
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Terms are being worked through on a deal that may value the business at as much as S$600m ($467m).
The discussions are still under way and there is no certainty that an agreement will be reached, the sources said.
An AllianzGI spokesperson declined to comment.
UOB said it remains focused on delivering long-term value for shareholders and meeting the customer needs but did not comment further.
In December, UOB had been reviewing options for the unit, including a potential disposal, as part of efforts to simplify its portfolio.
Other parties that submitted bids for the business included Amundi, KKR and Seviora, the asset management company backed by Temasek Holdings.
One of the central issues in the process was the extent to which UOB’s Southeast Asian distribution platform would form part of any transaction, the people have said.
Founded in 1986, the wholly owned UOB subsidiary oversees more than S$41bn in assets. Beyond Singapore, it maintains offices in Brunei, Indonesia, Japan, Malaysia, Thailand and Vietnam.
Meanwhile, last month, UOB revealed plans to increase income from its wealth business twofold by 2030, with its leadership pointing to rising numbers of affluent customers as a key area of focus.
Speaking at the bank’s earnings briefing, deputy chairman and chief executive Wee Ee Cheong said the lender sees room to expand in wealth management because of a broad and growing base of higher-income customers that remains relatively untapped.
As of the end of March, AllianzGI managed close to €600bn ($697bn) in assets, spanning equities, fixed income, private markets and multi-asset strategies. The firm is owned by Germany’s Allianz, which also controls bond manager Pacific Investment Management Co.
