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August 26, 2019

Japan’s SMFG to acquire British asset manager TT International

Japanese financial services company Sumitomo Mitsui Financial Group (SMFG) is set to acquire British asset manager TT International.

According to a report by the Nikkei, SMFG will pay around JPY20bn ($188m) as consideration for this acquisition.

However, the value of the transaction may increase up to JPY35bn after including performance-based compensation provisions.

Following the acquisition, the Japanese firm intends to utilise TT International’s expertise in emerging-market equities to cater to the local investors restricted by low returns. The move is also expected to strengthen group’s overall asset balance.

At the end of last month, TT International had around $8.4bn in assets under management, a majority of which is invested emerging-market stocks in Asia.

Its portfolio also includes pension fund customers in North America and the UK, according to the publication.

The TT International acquisition is expected to close in this fiscal year. Once complete, the British asset manager will operate separately from SMFG unit Sumitomo Mitsui DS Asset Management.

However, the deal was not confirmed by SMFG and TT International.

Headquartered in Tokyo, SMFG was established by Sumitomo Mitsui Banking. It is one of the largest banks in Japan with assets of around $1.8 trillion.

It services include personal banking, corporate banking, investment banking and management, wealth management among others.

Last year, SMFG concluded a memorandum of understanding (MoU) with Daiwa Securities Group to merge their asset management arms.

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