ING has continued its recent spate of sell-offs after it agreed to sell its investment management business in South Korea to Macquarie Group, the Australia-based global provider of financial services.
The unpriced sale is not expected to have a material impact on ING Group results and is subject to the usual regulatory approvals with completion not expected until Q4 2013.
The transaction is part of ING's earlier announced process to divest itself of its insurance and investment management businesses as it seeks to raise its capital base ahead of the Basel III capital adequacy rules. The process to divest the remaining insurance and investment management businesses in Asia, including ING Life Korea, is on-going and any further announcements will be made if and when appropriate, says the bank. Today's announcement does not impact ING's commercial banking activities in South Korea, which will continue insist the bank.
ING's investment management business in South Korea manages approximately KRW 25 trillion (approximately EUR 17 billion) of assets as of 31 March 2013, primarily for local institutional clients including ING Life Korea. Macquarie has more than 13,600 employees across 28 countries and provides banking, financial, advisory, investment and funds management services.