Magazine article American Banker

Dresdner-Deutsche to Boost Allianz in Asset Management

Magazine article American Banker

Dresdner-Deutsche to Boost Allianz in Asset Management

Article excerpt

With deals on both sides of the Atlantic, Allianz Group of Germany is poised to become a global player in insurance and asset management, with a substantial presence in the U.S. market.

Under the proposed $29 billion merger of Deutsche Bank and Dresdner Bank, the Munich insurance company would reduce its holdings in both German banking companies and use the proceeds to acquire Deutsche Bank's European mutual fund business, DWS, along with its life insurance unit, Deutscher Herold.

Allianz would also take a 32% stake in Bank 24, as the retail branch network of both Deutsche and Dresdner would be known upon the deal's closing, which is scheduled for the first quarter of next year. Allianz is paying about $5.7 billion for the three components, analysts said. Deutsche Bank needs to shed certain businesses to avoid antitrust concerns, according to a spokeswoman for the banking company.

In a separate deal with Deutsche Bank, the insurer would acquire a 70% stake in fund manager Finanza & Futuro in Italy, where mutual funds are becoming increasingly important.

At the same time, Allianz is just weeks away from gaining shareholder approval for its $3.3 billion acquisition of 70% of the fund company Pimco Advisors in Newport Beach, Calif. That deal would put it in partnership with Pacific Life Insurance Co., which owns the remaining stake.

Allianz would thus add $90 billion of fund assets in Germany, Luxembourg, Austria, Switzerland, and Italy.

With its proposed acquisition of $250 billion-asset Pimco, Allianz is starting to make itself known in the United States, said Geoffrey H. …

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