ING Sells Baring Unit To MassMutual
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ING Group, Amsterdam, has agreed to sell its Baring Asset Management unit in 2 parts to Massachusetts Mutual Life Insurance Company and Northern Trust Corp.
MassMutual, Springfield, Mass., will buy Barings investment management division, while Northern Trust, Chicago, will acquire the companys financial services group.
Under the terms of the agreement, MassMutual will have the exclusive right to use the Baring Asset Management name, says Robert J. OConnell, chairman, president and CEO of MassMutual.
Financial terms of the deal were not disclosed, although OConnell said in an interview that MassMutual would pay "well above $100 million" for Baring Asset Management Limited U.K. along with related subsidiaries.
OConnell says the main goal of the acquisition is to give MassMutual a quick route to the global asset management business. The acquired firm has more than 600 employees, including 100 investment professionals in London, Hong Kong, Tokyo and Boston, and other offices throughout the world.
OConnell says the acquisition will add around $32 billion to his companys assets under management, which currently stand at more than $300 billion.
Baring "is a strong strategic fit as we grow our investment operations internationally," he adds.
Having exclusive rights to the widely recognized Baring name was an important part of the deal, according to OConnell.
"We insisted we get [the name], and we get the right to use it in other businesses, as well," he says.
