Canada’s Toronto-Dominion Bank (TD Bank) has agreed to acquire Greystone Managed Investments, a unit of Greystone Capital Management (GCMI), in a stock-cash deal worth C$792m ($602.7m).
Saskatchewan-based Greystone was established in 1988 and employs around 200 staff.
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Greystone also has offices in Toronto, Winnipeg and Hong Kong. The institutional investment manager offers fixed income, Canadian equities, US equities, international equities, real estate, mortgages and infrastructure services.
As per the agreed terms of the transaction, GCMI shareholders will be entitled to receive 30% of the net acquisition amount in TD shares and the rest in cash.
The deal will add $36bn in assets to TD’s books, making TD Asset Management the largest money manager in the country.
TD’s assets will swell to around $393bn following completion of the deal, which is anticipated in the second half of this year.
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By GlobalDataTD Asset Management CEO and CIO Bruce Cooper said: “The compatible cultures and investment philosophies shared by TD and Greystone will allow our organisations to build on existing strengths, broaden our expertise, and offer better, more comprehensive investment solutions for our collective clients, including the opportunity to work together to launch a global real estate fund.”
Greystone will be renamed as TD Greystone Asset Management post deal completion, which is pending regulatory approval. The business will continue to operate from its existing base in Regina.
TD expects the deal to lower its CET1 by less than 10 basis points on closing.
TD group head of wealth management and insurance Leo Salom said: “Greystone’s leadership in alternative investments is a perfect complement to TDAM’s traditional investment products. Their robust suite of proven alternative and traditional investment solutions, combined with the scope and strength of TD’s existing offerings, will provide clients with compelling solutions to enhance their current portfolios.”
