WESTLB MELLON ASSET MANAGEMENT TO LAUNCH IN THE FIRST QUARTER OF 2006
WestLB Mellon Asset Management, the new name for the 50:50 joint venture to be formed by WestLB AG and Mellon Financial Corporation, will launch to the marketplace in the first quarter of 2006. It will have approximately 240 employees and more than €40 billion in assets under management. The formal joint venture agreement was signed on 20 December 2005 and completion of the transaction is subject to regulatory consents.
This new asset management business combines WestLB’s main asset management activities (presently branded WestAM) with Mellon’s German asset management activities. The company will include WestAM’s activities in Germany, the U.K., Italy, Spain, the U.S., Australia and Japan and will be the exclusive distributor of Mellon products in Germany. WestLB’s French banking subsidiary, Banque D’Orsay (BDO), will be the joint venture’s exclusive distributor in France and also will become a distributor of Mellon’s asset management products in France. Mellon will globally distribute the asset management products of both the joint venture and BDO.
WestLB Mellon Asset Management will operate consistently with Mellon's 10 existing institutional investment subsidiaries, with a focus on its distinct investment philosophy and strategies, while utilising Mellon's global distribution platform and leveraging the scale of Mellon's distribution and support services to its institutional asset managers.
Luke Nunneley, CEO designate of WestLB Mellon Asset Management, said: “I am delighted to announce the creation of the new venture. With our current award-winning products, combined with access to capabilities offered by other Mellon managers, I am looking forward to a successful first year for the new business.”
Jon Little, CEO of Mellon Global Investments and Chairman designate of WestLB Mellon Asset Management, added, “The strong fit between the product and distribution profiles of Mellon and WestLB makes this joint venture a compelling business proposition for both parties. With a trend towards consolidation and focus in the European financial services industry, I am confident our combined expertise will soon position WestLB Mellon Asset Management as one of the leading specialist asset managers in Europe.”
Financial terms have not been disclosed, although the proposed transaction is expected to have positive financial impact for both parties. This agreement is expected to close in the first quarter of 2006. WestLB was advised by Hawkpoint Partners Limited and Mellon by Lazard & Co. Limited.
WestAM (WestLB Asset Management) is a global institutional asset management company. WestAM is part of the WestLB Group and has for many years been a leading specialist provider of asset management products in the US, Europe, Asia and Australia. Today, WestAM (including its Brightwater Capital Management subsidiary in New York, which is not included in this transaction) has approximately Euro 73 billion under management for some 500 institutional clients, including corporates, pension funds, savings banks, insurers and public sector institutions.
Mellon Financial Corporation is a global financial services company. Headquartered in Pittsburgh, Mellon is one of the world’s leading providers of financial services for institutions, corporations and high net worth individuals, providing institutional asset management, mutual funds, private wealth management, asset servicing, payment solutions and investor services, and treasury services. Mellon has approximately $4.5 trillion in assets under management, administration or custody, including $766 billion under management. Its asset management companies include US asset management distributor The Dreyfus Corporation, and institutional investment management subsidiaries The Boston Company Asset Management, EACM, Franklin Portfolio Associates, Mellon Capital Management, Mellon Equity Associates, Mellon HBV Alternative Strategies, Standish Mellon Asset Management and, based in the UK, Pareto Investment Management, Mellon Global Alternative Investments and Newton Investment Management Limited.
News and other information about Mellon is available at www.mellon.com.