Japanese banking giant Nomura has signed an agreement with American Century Investments and CIBC to purchase a non-controlling 41% stake in American Century.
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As per the terms of the deal, Nomura, through a wholly owned subsidiary, will pay approximately $1bn to acquire the stake from CIBC.
The acquisition will enable Nomura to access and use American Century’s asset management capabilities to develop investment solutions for its retail and institutional clients internationally.
Additionally, the deal will help Nomura to further diversify its business interests, giving it an expanded investment footprint in the US investment management market.
Subject to approval by regulatory authorities, the deal is scheduled to complete in the first half of 2016.
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By GlobalDataThe agreement with Nomura will allow American Century to support its growth initiative to expand non US distribution of the firm’s products and services.
As part of the deal, Nomura and American Century Investments have agreed to strategically explore ways to boost their asset management businesses globally.
Following the transaction, Nomura will appoint two representatives to American Century’s 11-person board of directors.
Nomura Group CEO Koji Nagai said: "Nomura’s relationship with American Century will bring value to both firms and the deal represents Nomura’s continuing ambition to put clients at the center of everything it does while connecting markets east and west."
American Century president and CEO Jonathan Thomas said: "The strength of Nomura’s asset management business in Asia complements American Century’s own success in North America.
"By leveraging our new relationship with Nomura, we’ll be able to build upon the success of our global business and broaden the array of clients who can access our investment management capabilities."
