Hanwha Securities to buy Prudential’s 2 Korean units
15 Feb 2010
Korean brokerage house Hanwha Securities Co. has signed an agreement on Friday to buy the South Korean brokerage and asset management units of US life insurer Prudential Financial Inc., reported the South Korea's Yonhap news agency.
Hanwha Securities bagged the assets outmanoeuvring several contenders including Australia's Macquarie Group and KB Financial Group.
The deal, estimated at about 490 billion won ($425.4 million), is subject to regulatory approval.
The units that Hanwha is buying are Prudential Investment & Securities Co. and Prudential Asset Management Co.
Prudential Financial bought the two companies from the South Korean government for 355.5 billion won in 2004.
According to analysts, the deal would help Hanwha Securities move a step closer to becoming a major securities firm in a crowded sector where over 60 brokerages compete for a stake in a $165 billion industry.
The acquisition is also expected to expand Hanwha Securities' assets and competitiveness in fund sales.