ORIX acquires Robeco
ORIX Corporation is acquiring approximately 90.01 per cent of the equity in Robeco from Rabobank for EUR1,935m (JPY240.2bn).
Closing of the transaction is subject to legal and regulatory approvals, which are expected to be completed within six months.
Part of the agreement is a strategic alliance between Rabobank and ORIX. This includes Rabobank retaining a 9.99 per cent share in Robeco, and continuing to cooperate in maintaining and expanding Robeco's business platform. ORIX will allocate treasury stock to Rabobank as part of the acquisition price, and as a result Rabobank becomes a shareholder of ORIX. Also, ORIX and Rabobank have agreed that Robeco's banking activities, which are only based in the Netherlands, will be transferred to Rabobank with Robeco retaining its client service relations.
The financial market has drastically changed since the financial crisis and ORIX believes that it is necessary to pursue a new business model by combining finance with related services in a strategy called "Finance + Services." As one of the measures to drive this strategy, ORIX has been seeking to build its presence in the global asset management industry in recent years, as evidenced by the 2010 purchase of Mariner Investment Group in the US.
Robeco's management board will remain in their current roles with Roderick Munsters continuing as CEO and reporting to ORIX headquarters in Tokyo. Robeco Group NV's legal structure will remain unchanged, as will the current governance and reporting lines from Robeco's subsidiaries. ORIX will also retain Robeco's supervisory board structure including both independent members as well as representatives from ORIX.
Last year Robeco achieved record results, demonstrating the strength and resilience of the business, both in the Netherlands and internationally. Robeco's assets under management increased by 26 per cent to EUR189bn at the end of December (2011: EUR150bn). Net new cash was also at a record of EUR18.4bn. Net profit increased from EUR134m to EUR197m. Investment performance was also strong with 65 per cent of Robeco's assets outperforming their benchmarks.
Yoshihiko Miyauchi (pictured), chief executive of ORIX Group, says: "Robeco is a global company with an outstanding brand and excellent management, well-diversified in all aspects including asset management products, investor clientele, managed portfolio, and regional presence. The management team has displayed tremendous performance over the years and we are confident that they will continue to accomplish this going forward. ORIX will pursue further expansion in Europe and the US as well as growth in Asia and Middle East regions where it has a strong platform."
Piet Moerland, chairman of the executive board of Rabobank Group, says: "Rabobank and Robeco have strengthened each other over the past decades by working closely together in serving their clients. This cooperation will remain. Robeco is a solid asset manager, with a track record of being innovative, for instance by introducing pension solutions. Robeco has now the opportunity to develop further under ORIX's ownership."
- Special Reports