Citywire - For Professional Investors

Register to get unlimited access to all of Citywire’s fund manager database. Registration is free and only takes a minute.

M&G and Prudential investment arms to merge

M&G and Prudential investment arms to merge

Prudential is to merge its funds arm M&G Investments with its Prudential UK and Europe businesses to form a new investment division.

The division will be called M&G Prudential, which the firm described as a savings and investments business focused on meeting growing customer demand for comprehensive financial solutions. The business will control some £332 billion (€368 billion) in assets. 

'Combining these businesses will allow us to better leverage our considerable scale and capabilities. This will enable us to increase our growth prospects by providing better outcomes for our millions of customers,' Prudential told the market. 

M&G chief Anne Richards (pictured) added: 'This is an exceptional opportunity to bring together M&G's extensive investment capabilities and Prudential UK&E's expertise in balance sheet management.

'It will enable our investment teams to offer their expertise to a wider range of customers and across a broader range of investment and savings formats, while continuing to provide our current clients with the same high level of service.' 

Rationale revealed

Prudential said M&G Prudential will be able to leverage its scale, financial strength and complementary product and distribution capabilities to enhance the development of capital-light, customer-focused solutions.

Additionally the new entity will combine M&G's active investment expertise with Prudential UK&E's capabilities in volatility-adjusted savings and liability-driven investment, providing more choice for customers of both historical channels.

Prudential also pointed out the unified business will also be better positioned to develop and fund joint product propositions and to build new digital service and distribution to meet fast changing customer needs. 

It is estimated that the merger will save £145 million (€160 million) per year, which will include job cuts. However, it was not revealed what areas of the combined company would be affected.

Additional reporting by Chris Sloley.

 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Events
  • Citywire Asia Retreat 2016

    Citywire Asia Retreat 2016

  • Citywire Asia Retreat 2016

    Citywire Asia Retreat 2016

  • Citywire Asia Retreat 2016

    Citywire Asia Retreat 2016

  • Citywire Thailand 2016

    Citywire Thailand 2016

  • Citywire Thailand 2016

    Citywire Thailand 2016

  • Citywire Thailand 2016

    Citywire Thailand 2016

  • Citywire Hong Kong 2016

    Citywire Hong Kong 2016

  • Citywire Hong Kong 2016

    Citywire Hong Kong 2016

  • Citywire Hong Kong 2016

    Citywire Hong Kong 2016

  • Citywire Singapore 2016

    Citywire Singapore 2016

  • Citywire Singapore 2016

    Citywire Singapore 2016

  • Citywire Singapore 2016

    Citywire Singapore 2016

  • Citywire Singapore 2015

    Citywire Singapore 2015

  • Citywire Singapore 2015

    Citywire Singapore 2015

  • Citywire Hong Kong 2015

    Citywire Hong Kong 2015

  • Citywire Hong Kong 2015

    Citywire Hong Kong 2015

  • Citywire Asia 2014

    Citywire Asia 2014

  • Citywire Asia 2014

    Citywire Asia 2014