Power Corp. buys stake in Chinese asset manager

Power Corporation has struck a deal to purchase 10% of China Asset Management Co. Ltd. (China AMC) from CITIC Securities Co. Ltd., for about C$276 million.

China AMC was established in 1998 and was one of the first asset management companies approved by the China Securities Regulatory Commission. It is recognized as the leading company in the Chinese asset management sector, with approximately US$35 billion in AUM (excluding annuity and separate accounts) at December 31, 2010.

“We are pleased to become associated with CITIC Securities and China AMC,” said Paul Desmarais, Jr., Chairman and Co-Chief Executive Officer of Power Corporation. “This investment represents a unique opportunity for Power Corporation to participate in an industry-leading fund manager in one of the world’s largest economies, where there is growing demand for financial services.”

The transaction is expected to close by the end of the year, subject to Chinese regulatory approvals and certain other conditions.

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The staff of Advisor.ca have been covering news for financial advisors since 1998.