M&G PLC (LSE:MNG) has announced a long-term strategic partnership with Japan's Dai-ichi Life Holdings spanning asset management and life insurance, with Dai-ichi set to acquire a 15% stake in the UK-listed asset manager.
Under the agreement, M&G will become Dai-ichi’s preferred asset manager in Europe. The partnership is expected to generate at least $6 billion (£4.5 billion) in new flows for M&G over the next five years, half from Dai-ichi’s balance sheet and half via joint distribution opportunities. Meanwhile, Dai-ichi is forecast to gain $2 billion (£1.5 billion) in flows through the collaboration.
Dai-ichi Life HD’s planned 15% stake in M&G, subject to regulatory approvals, comes via market purchases and does not alter M&G’s share capital. Once the threshold is reached, Dai-ichi will gain the right to appoint a board director at M&G.
The two groups will collaborate on public and private markets, joint product development, and life insurance expertise, particularly in bulk purchase annuities. Strategic alignment and long-term value creation are at the heart of the agreement.
“Dai-ichi Life Holdings is delighted to enter into a strategic alliance with M&G,” said Dai-ichi CEO Tetsuya Kikuta. M&G’s CEO Andrea Rossi added the deal “recognises M&G’s strengths and clear confidence in our leadership and long-term prospects.”