Mitsubishi UFJ completes acquisition of First State Investments In £2.2bn deal
Mitsubishi UFJ Trust and Banking Corporation (MUTB), a wholly owned subsidiary of Mitsubishi UFJ Financial Group (MUFG), has completed the acquisition of First State Investments from Commonwealth Bank of Australia for $2.7bn (£2.2bn).
First State Investments will operate as a standalone global investment management business, governed by a board initially comprising representatives from First State Investments and Mitsubishi UFJ Trust and Banking. It is expected that the board will be expanded to include independent non-executive directors in the coming year.
Investment Week first reported that Mitsubishi UFJ was set to buy Colonial First State Global Asset Management, First State's parent company, back in October 2018.
Mark Steinberg, First State Investments' chief executive officer, commented that the transition in ownership means First State Investments now has the strategic support to continue the growth of its global business.
"Under MUFG ownership, we will have the financial backing and shared strategic vision to enable us to become an even stronger global investment manager,"
"Our investment teams will continue to enjoy their current levels of investment autonomy, which has underpinned the business' strong growth and long-term performance.
Importantly, their commitment to incorporating ESG principles across their processes and strategies will remain central to their investment approach.
"We maintain a consistent firm-wide view on our important role and responsibility as a steward of our clients' capital. This underpins our corporate identity and will continue to be the binding element across our various investment teams' philosophies and strategies."
Chris Turpin, First State Investments' managing director, EMEA, added:
"Our focus on providing our clients with the highest quality, long-term investment capabilities remains as strong as ever. We are extremely excited about our future under new ownership, and how we can further develop our business in the interests of our clients."
Mikio Ikegaya, president and CEO of Mitsubishi UFJ Trust and Banking, commented: "We are committed to supporting First State Investments' strategy of delivering high-quality investment capabilities and establishing and maintaining strong client relationships.
"We look forward to working with First State Investments as we continue to expand our investment management business and investment offerings globally."