Transfer of Businesses
Deutsche Bank will acquire Zurich Scudder Investments for $2.5 billion. Threadneedle, currently a part of Zurich Scudder Investments’ insurance business, will be retained by Zurich and is not included in the purchase price.
Zurich will acquire 75.9% of Deutscher Herold Group, including Deutscher Herold Leben and Deutscher Herold Allgemeine and 100% of Deutsche Bank’s life insurance operations in Italy, Spain and Portugal, based on a valuation of 1.5 billion for 100% in all the above operations.
The transactions are subject to regulatory approval and are expected to close early next year.
The deal allows Zurich to extend its influence in Continental Europe, making it one of the five largest insurance organizations in the region. It will also strengthen the group?s product offerings in asset management through its relationship with Deutsche.
The two firms have also formed a distribution agreement. Zurich will distribute Deutsche Bank’s asset management products and banking services, and Deutsche Bank will distribute Zurich’s life and non-life insurance products.
Zurich with Deutscher Herold will be the exclusive provider for insurance products to Deutsche Bank’s retail and private banking customers in Germany. Zurich will also be the exclusive provider in Italy, Spain and Portugal and the preferred provider elsewhere in Continental Europe.
Separate negotiations will continue with regard to Zurich’s potential purchase of Bonnfinanz and to Deutsche Bank’s potential acquisition of Zurich’s asset management businesses in Germany and Italy.