Edelweiss Asset Management on Tuesday announced the acquisition of global giant JP Morgan's mutual fund business in India that has assets worth over Rs 7,000 crore
Edelweiss Asset Management on Tuesday announced the acquisition of global giant JP Morgan’s mutual fund business in India that has assets worth over Rs 7,000 crore, marking yet another exit of a foreign fund house from the over Rs 13 lakh-crore industry.
Under the deal, Edelweiss will acquire all onshore fund schemes managed by JP Morgan Asset Management India including its country-based onshore mutual fund business and the international fund of funds, subject to regulatory approvals, Edelweiss said in a statement.
Post acquisition, the AUMs of the combined entity would be Rs 8,757 crore.
Along with the schemes, Edelweiss said it is committed to absorbing majority of employees of JP Morgan ensuring business continuity as well as a platform for enhanced growth.
The deal size could not be ascertained immediately.
In the past few years, a number of global players have exited the Indian mutual fund business. Reliance Capital Asset Management (RCAM) last year announced takeover of global giant Goldman Sachs’ mutual fund business in India for Rs 243 crore in an all-cash deal.
Besides, Birla Sunlife had acquired ING Mutual Fund, Kotak MF has bought PineBridge Mutual Fund and Pramerica has taken over Deutsche Bank’s MF business in India.