(February 19, 2013) — A Japanese financial firm is to snap up one of the Netherlands’ most prominent asset management companies some after 10 months of marketing by its parent firm.
Rabobank is to sell a 90.1% stake in Robeco to Orix, for €1.9 billion, the companies announced today. The Dutch bank put its asset management firm on the block in May last year.
Private equity firms and other financial institutions had been linked with the Dutch firm in the interim period.
Over the course of 2012, Robeco’s assets under management increased by 26% to €189 billion, the company said. Net profit increased from €134 million to €197 million over the year.
Part of the agreement is a strategic alliance between Rabobank and ORIX. This includes Rabobank retaining a 9.99% share in Robeco, and continuing to cooperate in maintaining and expanding Robeco’s business platform. ORIX will allocate treasury stock to Rabobank as part of the acquisition price, and as a result Rabobank becomes a shareholder of ORIX.
Within its home nation, Orix participates in a wide range of financial activity from automobile leasing to commodities futures trading,
It already has several strategic partners in Asia and the United States that run asset management arms, some of which have satellite offices in Europe. In South Korea it is involved with a private equity firm and in the US it has teamed up with Mariner Capital, an investment and risk management company.
However, the Robeco acquisition will mark Orix’s first major leap into European fund management.
Piet Moerland, chairman of the executive board of Rabobank Group, the sale of Robeco was the start of a new beginning. “Rabobank and Robeco have strengthened each other over the past decades by working closely together in serving their clients,” Moerland said. “Robeco has now the opportunity to develop further under ORIX’s ownership.”
Robeco’s CEO, Roderick Munsters, was CIO of Dutch pension investor APG All Pensions Group from 2005 until 2009after spending eight years on the executive board for investments at pension fund investor PGGM.
If passed by financial regulators, the deal is set to complete in six months’ time.
Related content: The Profile: Bernard Walschots, CIO, Rabobank Pension Fund