Billion-dollar deal increases firm's interest to 27.8%
IGM Financial Inc. subsidiary Mackenzie Financial Corporation (Mackenzie Investments) has announced it’s closed the transaction to acquire Power Corporation of Canada's (PCC) 13.9 per cent interest in China Asset Management Co., Ltd. (ChinaAMC) for CAD$1.15 billion.
The transaction was completed on January 12, 2023 and doubles Mackenzie's total interest in ChinaAMC to 27.8 per cent. Mackenzie made the move to enhance its participation in the rapidly growing Chinese asset management industry via one of the country’s leading firms. It hopes the new deal will also enhance its ability to build global, fully diversified and differentiated solutions for its clients.
"We look forward to expanding our relationship with ChinaAMC, who are well positioned to leverage the growth taking place in a market that's expected to represent a significant percentage of global net sales in the coming years," Luke Gould, President and CEO, Mackenzie Investments said in a press release.
"Since 2017, Mackenzie and ChinaAMC have worked together to build a significant sales relationship, and we expect our increased interest will only strengthen growth opportunities between our two companies."
As partial financing for the purchase of ChinaAMC shares, IGM sold 15,200,662 Lifeco Shares to a subsidiary of PCC, for aggregate consideration of approximately CAD$552.7 million.
