Dai-ichi Life Holdings has revealed plans to acquire a 15% stake in UK-based insurer M&G through on-market purchases “to capture long-term value creation opportunities across an array of strategic initiatives”.
The acquisition, subject to regulatory approvals, is part of a long-term strategic partnership between the two companies covering asset management and life insurance.
Go deeper with GlobalData
Once the 15% threshold is reached and certain conditions are met, Dai-ichi will have the right to appoint a director to M&G’s board.
Under the terms, M&G will become Dai-ichi’s preferred asset management partner in Europe.
The partnership will focus on growth, distribution and product development, with the aim of generating new business flows for both companies.
M&G expects the partnership to support its expansion into European private markets and open new business opportunities in Japan and Asia.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataDai-ichi will gain access to M&G’s investment capabilities across public and private markets to support its own portfolio and client needs, and will collaborate to enhance Dai-ichi’s expertise in bulk purchase annuities.
Dai-ichi Life HD president and CEO Tetsuya Kikuta said: “Dai-ichi Life Holdings is delighted to enter into a strategic alliance with M&G, a highly regarded global player in the insurance and asset management industries, to collaborate and develop capabilities together in multiple areas, especially in Europe.
“We see our partnership with M&G acting as a spearhead to develop our presence across Europe and the UK, accelerating our strategy to become a global top-tier insurance group.”
The partnership is expected to generate at least $6bn in flows into M&G funds over five years, with Dai-ichi expecting at least $2bn (Y285.83bn) in new flows through investments and distribution of its products.
An implementation agreement outlines Dai-ichi Life HD’s governance rights and includes restrictions such as a two-year lock-up, a 19.99% shareholding cap and an orderly market arrangement for share disposals.
Commenting on the partnership, M&G Group CEO Andrea Rossi stated: “It brings together two highly complementary international businesses with shared growth ambitions who aim to deliver excellent client service and sustainable shareholder returns.”
In April, TAL, a subsidiary of Dai-ichi Life Holdings, agreed to acquire a 15.1% stake in retirement solutions provider Challenger for Y80bn.
