Principal Financial Group, a US-based financial services firm, has agreed to acquire Punjab National Bank’s (PNB) minority stake in their mutual fund joint venture (JV) in India.
The deal would offer Principal sole ownership of Principal PNB Mutual Fund, in which PNB holds a 21.38% stake.
The deal, whose financial terms were not disclosed, is currently pending regulatory approval.
Principal PNB Mutual Fund reported average assets under management of INR58.25bn ($918.6m) as at 30 September 2017.
Commenting on the acquisition, Principal Southeast Asia and India president Pedro Borda said: “PNB has been a valuable partner in helping us to grow and establish a presence in the market. Principal has been assuming increased ownership in the asset management company over time and we are excited to continue to invest and grow in India.”