After the announcement more than seven months ago, Mellon Financial Corporation and WestLB AG, have made good on plans to combine asset management businesses, creating a EUR 38 billion equal partnership in WestLB Mellon Asset Management.
The new company launched on April 1, 2006 with approximately 250 employees. The agreement in principal was announced on September 21, 2005 and the formal joint venture agreement was signed on December 20, 2005. Since the signing of this agreement, the new venture already has identified and secured significant new business.
Financial terms have not been disclosed, although the transaction is expected to have positive financial impact for both parties.
This new asset management business combines WestLB’s main asset management activities (previously branded WestAM) with Mellon’s German asset management activities. The company includes WestAM’s activities in Germany, the UK, Italy, Spain, the US, Australia and Japan and is the exclusive distributor of Mellon products in Germany.
WestLB’s French banking subsidiary, Banque D’Orsay (BDO), is 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 and will use Mellon’s global distribution platform.