Minter Ellison and Bell Gully have advised Suncorp on its agreement to sell Tyndall Investments in Australia and New Zealand to Nikko Asset Management, advised by Allens Arthur Robinson and Russell McVeagh, as part of its strategic focus of simplifying its life business.
The transaction is conditional on Japanese regulatory approval.
Tyndall, which has $25 billion of funds under management, is in the top 15 Australian fund managers by size and the top five in New Zealand.
Nikko, owned by Japan's Sumitomo Trust & Banking Co, has $US117.6 billion ($120.4 billion) in assets under management.
Suncorp will remain Tyndall's major client, creating an important strategic customer partnership going forward. Approximately $18 billion of Suncorp directed funds will continue to be managed by Tyndall Investments.
The transaction also positions Tyndall Investments for future growth as Asset Management has strong distribution capabilities in the pan-Asian region.
The Minters team was led by partner Christopher Brown and senior associate Tim Rowe.
"We suspect that the sale will result in other insurers in the region looking carefully at how they can externalise their internal funds management activities to release value and focus on core strategies, while ensuring that the necessary priority is given to the interests of policyholders and others in accordance with legal requirements and good governance," said Brown.