According to the Investment News, CIBC is purchasing a 41% stake in American Century Investments, a move that the Canadian bank expects will be the first in a number of acquisitions it could make to expand its wealth management business internationally.
This morning, the firm announced that it was buying the minority stake in American Century from JPMorgan Chase & CO. for $848 million. In addition to the 41% stake, CIBC will also gain a 10% voting interest in the company, the firm said. The deal is expected to close within 90 days pending regulatory approval.
The deal gives CIBC a foothold in the U.S. wealth management market, and it plans to sell American Century products in Canada, along with its own offerings within the U.S., to both retail and institutional clients, said CIBC President and chief executive Gerry McCaughey, in an analyst call this morning about the deal.
This information, which is publicly available on the Investment News website, is being provided by The White Law Group.
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