Voya Financial, an American insurance provider said on Tuesday it would take over “a substantial majority” of Germany-based Allianz’s asset management business in the United States.
Voya said it has entered into a memorandum of understanding with Allianz Global, the asset management division of Allianz. Under terms of the proposed partnership, Allianz GI would get a stake of up to 24% in Voya’s investment management business.
This new deal was announced after Allianz agreed to pay about $6 billion and its US asset management unit agreed to plead guilty to fraud over the collapse of its multibillion dollar Structured Alpha funds amid market turmoil triggered by the COVID-19 pandemic.
Voya said it is anticipating a purchase agreement to be finalized in the next few weeks. After the deal, Voya’s investment management unit will manage nearly $370 bln of assets, the company said. The planned acquisition will require no external financing or use of Voya’s excess capital, it added.
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