Mellon Financial Corporation announced that WestLB Mellon Asset Management, the joint venture it is forming with WestLB AG (see “WestLB And Mellon Fund Management Joint Venture To Go Ahead”), will launch to the marketplace in the first quarter of 2006.
It will have approximately 240 employees and approximately $47.5 billion in assets under management. The formal joint venture agreement was signed on December 20, 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 utilizing Mellon’s global distribution platform and leveraging the scale of Mellon’s distribution and support services to its institutional asset managers.
“I am delighted to announce the creation of the new venture. With global reach for our current award winning products, access to capabilities offered by other Mellon managers and enhanced distribution both for WestLB and Mellon, I am looking forward to a successful first year for the new business, ” said Luke Nunneley, CEO-designate of WestLB Mellon Asset Management.
“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,” added Jon Little, chief executive officer of Mellon Global Investments and chairman-designate of WestLB Mellon Asset Management.
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.