UPDATE: Mexico's Actinver Closes Prudential Acquisition
October 06 2009 - 11:47AM
Dow Jones News
Mexican financial services group Grupo Actinver SA said Tuesday
it has completed the acquisition of Prudential Financial Inc.'s
(PRU) local asset management business for an undisclosed
amount.
The deal, which included Prudential's mutual fund operations and
a small bank, boosts Actinver's mutual fund assets to about 60
billion pesos ($4.41 billion) managed on behalf of more than
200,000 clients, the company said in a press release.
"As a result of this operation, Actinver consolidates its growth
and reinforces its position as one of the five most important
financial services groups in terms of asset management in Mexico,"
the company said.
Actinver, whose operations include a brokerage house, said it
plans to add banking services to the portfolio of asset management
products it currently distributes through its 71 offices.
Prudential's Mexican insurance, pension fund and real estate
operations weren't included in the transaction.
Actinver has been an active deal maker in recent years as it
seeks to grow its core mutual fund business. The Mexico City-based
firm sold its pension fund company to the local subsidiary of
Metlife Inc. (MET) in 2007 and acquired rival mutual fund company
Operadora de Fondos Lloyd in 2006.
The fund industry is dominated by the country's top seven
commercial banks, which together held 78% of the sector's MXN921.34
billion in assets at the end of August, according to Mexico's
securities industry association, AMIB.
Prudential's divestiture of its asset management operations in
Mexico comes just two years after it opened a bank to complement
its mutual fund unit Prudential Apolo.
However, its fund business never really gained scale - it had a
1.9% market share with MXN17.53 billion in assets as of Aug. 31 -
in a sector increasingly dominated by banks and Actinver.
-By Ken Parks, Dow Jones Newswires, 52-55-5001-5723,
ken.parks@dowjones.com