NEW YORK (
) -- Franco-Belgian lender
New York Life Investment Management
late Tuesday, Sept. 24, sealed a firm deal for Dexia's fund management unit after the two companies entered exclusive talks last week.
New York Life agreed to pay €380 million ($511.9 million) for Dexia Asset Management, the same price as the abortive deal between
GCS Capital Partners
, of Hong Kong, and Dexia that collapsed in July.
Dexia and New York Life have now signed a share purchase agreement but the deal still needs regulatory approvals.
"The acquisition of Dexia Asset Management will provide our clients with access to the company's highly-rated funds, strong European platform, and established Australian equities business. It builds upon the strong momentum we've achieved in our third-party global asset management business and positions us for further growth in key markets around the world," said New York Life Chairman and CEO John Kim in a statement.
Dexia Asset Management has €74 billion in assets under Management as of July 31, meaning the price equates to about 0.5% of those managed funds. New York Life manages $388 billion. Dexia said the company was one of the final suitors in the original auction for the business.
FinEx Capital Management
, of London, said last week it had also submitted an offer for Dexia Asset Management.
Dexia was rescued by the governments of France, Belgium and Luxembourg during the credit crisis of 2008 and then again in 2011 when Europe's sovereign debt problems peaked. In November 2012, it secured another €5.5 billion bailout from the Belgian and French states. Dexia is going through an "orderly resolution" to wind itself down, with notable sales including the disposal of Turkey's
in August 2012 for about 6.5 billion lira ($3.4 billion).
Dexia and New York Life expect the transaction to close about year-end.
Written by Laura Board