Rabobank sells Robeco in business reshuffle
Rotterdam-based asset manager Robeco will now report to Tokyo
Dutch bank Rabobank is to sell its asset management business Robeco to Japanese financial services group Orix for €1.9 billion.
Based in the Dutch city of Rotterdam, Robeco covers European and US clients and has a presence in emerging markets in Asia, India and Latin America. Robeco has existed since 1929, but was acquired by Rabobank in 2001. The firm has €189 billion assets under management and 1,507 employees.
Orix will acquire a 90% stake in Robeco, while Rabobank will retain 10%. Under the deal, Rabobank will also acquire a 2% stake in Orix, while Robeco’s banking activities in the Netherlands will be transferred to Rabobank.
“Twenty years ago when our relationship with Robeco began, we didn’t sell investment products,” said Hendrik Jan Eijpe, spokesman for Rabobank. “Robeco became our in-house source of investment products. But later we began to sell investment products from other companies, and now Robeco makes up only a proportion of what we sell. Now it makes less sense for us to own an asset management company. We will keep a relationship with Robeco and will maintain one member on its supervisory board, and we see upside on our solvency ratio from this deal.”
Robeco increased its assets under management by 26% in 2012, recording an increase in profits from €134 million to €197 million.
Robeco’s management board will remain in their current roles, with Roderick Munsters continuing as chief executive. Munsters will now be reporting to Orix headquarters in Tokyo. Robeco will also retain its supervisory board structure including independent members as well as representatives from Orix.
“Orix will pursue further expansion in Europe and the US, as well as growth in Asia and Middle East regions where it has a strong platform,” said Yoshihiko Miyauchi, chief executive at Orix.
