UOB Sells Asset Management Arm for $434 Million

UOB's deal with Allianz is the second Singapore-related acquisition in two weeks. This follows Allianz's deal to buy HSBC's life and health insurance business.

Allianz Global Investors will buy UOB's shares in UOB Asset Management, which operates in several countries, including Singapore and Indonesia.

The deal includes extra cash and a 10-year distribution agreement.

UOB Asset Management has about S$42 billion in client assets. The purchase will increase AllianzGI's assets in Asia-Pacific to over €170 billion.

A man walks by a UOB bank branch in Singapore. UOB is selling its asset management arm.

The sale is part of UOB's plan to strengthen its wealth management business. UOB will still advise customers and sell investment products.

UOB will offer UOB Asset Management and AllianzGI investment products in several countries.

The agreement will start after the sale is completed. AllianzGI will have access to UOB's customer network.

The transaction needs regulatory approvals and is expected to close in 2027.

All 500 UOB Asset Management employees will move to AllianzGI. They will keep their jobs.

UOB expects a pre-tax gain of about S$330 million. Its common equity tier 1 ratio will increase by 14 basis points.

UOB shares were down 0.5% on Wednesday, similar to the Singapore index.

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