Asset management firms to join up

Kyodo

Sumitomo Mitsui Asset Management Co. and Toyota Asset Management Co. have agreed to integrate their management around next April.

Under the accord, Sumitomo Mitsui Asset will acquire all of the outstanding shares in Toyota Asset under a two-stage stock transaction with an eye on making it a wholly owned subsidiary, the two companies announced Tuesday.

The deal is designed to expand the customer base of Sumitomo Mitsui Asset and enhance its capability to develop financial products, they said.

During the initial stage, Mitsui Sumitomo Insurance Co., a major shareholder of Sumitomo Mitsui Asset, will acquire a 50 percent stake in Toyota Asset from Toyota Financial Services Corp. on Oct. 31. Under the second stage, Sumitomo Mitsui Asset will buy the stake from Mitsui Sumitomo Insurance, while acquiring the remaining 50 percent stake in Toyota Asset from Aioi Nissay Dowa Insurance Co., thereby turning it into a wholly owned arm, the two firms said.