Allianz to buy UOB asset management unit for S$555mil
The deal gives Allianz Global Investors access to UOB's distribution network across eight Asian markets, including Singapore, Indonesia, Thailand and Vietnam.
Allianz Global Investors (AllianzGI), the asset management arm of the insurer, will pay S$555 million (US$433 million) excluding one-off transaction costs for UOB Asset Management Ltd (UOBAM).
A statement on Wednesday, which confirmed an earlier Bloomberg News report, said the transaction is expected to be completed in 2027, pending regulatory approvals.
UOBAM, a wholly owned subsidiary of UOB, had about S$42 billion of assets under management as of end-2025. All 500 existing UOBAM employees will transition to Allianz.
The deal will give AllianzGI access to UOB's distribution network across eight Asian markets including Singapore, Indonesia, Thailand and Vietnam.
Fits CEO's targets
The UOB deal fits two of the objectives of Allianz chief executive Baete — growing in Asia and increasing exposure to asset management.
Allianz announced a deal on July 24 to buy HSBC Holdings Plc's Singapore insurance unit for S$2.7 billion. The group also recently moved to buy out the remaining minority owners of bond giant Pacific Investment Management Co (Pimco), having controlled the US firm for more than a quarter century.
AllianzGI had almost €600 billion (US$697 billion) in assets under management as of the end of March, spanning equity, fixed income, private market and multi-asset strategies. Pimco oversees some €1.6 trillion for outside clients.
What UOB gets
UOB expects the sale to generate a pretax gain of about S$330 million and boost the group's Common Equity Tier 1 ratio by about 14 basis points.
The sale is credit positive, Bloomberg Intelligence analyst Rena Kwok wrote in a note. "It enables the bank to monetize a non-core asset," she added.
People familiar with the matter said in December that UOB was exploring options for the asset management arm, including a possible sale, to streamline its portfolio. AllianzGI emerged as the likeliest buyer and entered exclusive talks to finalise a transaction, people familiar with the development said in June.
Amundi SA, KKR & Co and Temasek Holdings Pte's Seviora were also among the bidders.
Allianz reports earnings on Aug 7.
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