Nomura to buy 41% stake in American Century
While all eyes are on China, the Japanese are also expanding their overseas presence in the financial sector.
Japan’s biggest brokerage, Nomura Holdings, said Monday it’s boosting its US asset management capabilities with the purchase of a 41% stake in privately held investment management firm American Century Investments for about $1 billion from Canadian Imperial Bank of Commerce.
The deal will give Nomura a 10.1% voting interest in American Century.
This is Nomura’s biggest overseas deal since 2007, when it bought Instinet, a stocks trading platform. Six years ago, Nomura, bought the European and Asian operations of Lehman Brothers in an attempt to break into the top tier of global investment banks.
The stake in the Kansas City, Mo.-based money manager will bolster a strategy Nomura laid out in late November. At the time, it said it would strengthen its Americas operations over the next two to three years, by investing in its M&A advisory and primary equity and debt businesses.
CIBC acquired its 41% equity interest American Century in 2011 for $848 million.
Upon closing of the transaction, expected in the first half of 2016, Nomura will name two representatives to American Century’s 11-person board of directors.