Dai-ichi Life Holdings plans to acquire a 15% stake in British asset manager M&G as part of a distribution partnership that sent the UK firm’s shares surging to a three-year high.
The Japanese insurer will purchase M&G shares through open-market transactions, making it the largest shareholder in the London-listed company. The investment is valued at roughly $1.1 billion, according to market data.
Under the arrangement, M&G becomes Dai-ichi Life’s preferred European asset management partner, with both companies projecting $6 billion in new business flows for M&G and $2 billion for the Japanese firm over five years. M&G shares jumped 6% to 243 pence, reaching levels not seen since June 2021.
The partnership represents another step in Dai-ichi Life’s international expansion push. The insurer, which manages ¥67.5 trillion ($469 billion) in assets, has this year increased its stake in UK hedge fund Capula to 15% and acquired a 15.1% holding in Australian investment manager Challenger for around $550 million.
M&G will gain board representation rights for Dai-ichi Life, though the Japanese company is restricted from exceeding a 19.99% ownership threshold. The deal requires regulatory approvals and includes a two-year lock-up period on share sales.
Both companies expect the partnership to enhance their European private markets capabilities while providing M&G broader access to Asian distribution channels.
