Standard Life has sold its Canadian business to a subsidiary of Manulife Financial Corporation for a reported £2.2bn. The sale comprises Standard Life’s Canadian long term savings and retirement, individual and group insurance and investment management businesses.
Standard Life Investments has also entered into a new Global Collaboration Agreement with Manulife who intend to distribute Standard Life Investments’ funds into Canada, the United States and Asia. This is expected to more than treble Standard Life Investments’ assets under management distributed by Manulife within three years (H1 2014: £3.3bn), and deepen its existing highly successful relationship with John Hancock, the US unit of Manulife, extending Standard Life Investments’ exceptional record of global growth.
Following completion of the sale, Standard Life Investments’ Boston office will become a hub for its entire North American business, and a new dedicated office in Toronto is planned to continue serving Standard Life Investments’ institutional clients locally.
Keith Skeoch, CEO Standard Life Investments, said: “The sale and new Global Collaboration Agreement represent the next chapter in Standard Life Investments’ continuing growth story.
“The sale will create new opportunities at Standard Life Investments, as we enter into a Global Collaboration Agreement with Manulife, who intend to distribute our funds into Canada, the United States and Asia’s retail markets. We will reciprocate by distributing their funds into the UK retail market. It will also deepen our distribution capability with John Hancock in the United States and strengthen our profit margin and therefore our ability to reinvest in our business.
“The collaboration is a natural extension of our existing strategy where we have established a range of global strategic partnerships and relationships.
“We look forward to working with Manulife and delivering our key priorities: the continuity of investment performance and commitment to client service and relationship management”
*The transaction is expected to be completed in Q1 2015, subject to, inter alia, the approval of Standard Life Group’s shareholders and the relevant Canadian regulatory authorities.
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