(Reuters) -Deutsche Bank’s investment arm DWS Group will buy a 40% stake in a Nippon Life India Asset Management unit to build an alternate investment fund franchise, as the German firm looks to expand its footprint in Asia.
As part of the deal, DWS will hold up to 40% in the unit, with Nippon Life India owning the rest, the latter said in a statement on Thursday.
The companies did not disclose financial details of the deal, which will be subject to regulatory approvals.
DWS is one of Europe’s biggest fund managers. Nippon Life India Asset Management is owned by Nippon Life, Japan’s largest insurer, which has been on an international buying spree.
Nippon Life India said that the company and DWS will also work closely in other areas including passive investment products and global distribution.
In May, Reuters had reported that DWS is in talks to form an asset management joint venture in India with the Japanese insurer Nippon Life.
“India’s dynamic economy and its accelerating demand for sophisticated investment solutions make this partnership a natural step for us,” Kaushik Shaparia, CEO, India and Emerging Asia of Deutsche Bank, said in a statement.
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Mrigank Dhaniwala)
