(Reuters) -Japanese investment bank Nomura will acquire Macquarie Group’s public asset management operations in the United States and Europe for A$2.8 billion ($1.8 billion), the companies said on Tuesday.
The deal marks the latest major overseas acquisition by a Japanese firm as companies facing a shrinking domestic market seek out growth opportunities abroad.
Asset management has become a core growth area for Japanese financial institutions looking to secure stable fee-based revenue that is less impacted by the ups and downs of market sentiment.
Japan’s largest brokerage and investment bank will acquire all of Macquarie Asset Management’s U.S. and European public assets, investment teams and operating platforms and will retain the existing management team.
The transaction is expected to close by the end of 2025.
“It will be transformational for our investment management division’s presence outside of Japan, adding significant scale in the U.S., strengthening our platform, and providing opportunities to build our public and private capabilities,” said Kentaro Okuda, Nomura’s president and group CEO.
Macquarie Group, Australia’s biggest investment bank by assets, will retain its public investments business in its domestic market, where it plans to continue operating a comprehensive asset management business spanning both public and private markets.
The Australian financial conglomerate said that, as part of the deal, it would collaborate with Nomura on product and distribution.
Upon the deal’s completion, Nomura’s total assets under management within its investment management franchise are expected to increase to around $770 billion from approximately $590 billion currently, Nomura said.
($1 = 1.5596 Australian dollars)
(Reporting by Roushni Nair in Bengaluru; Editing by Devika Syamnath, Mohammed Safi Shamsi and Aurora Ellis)
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