US insurer Nationwide Mutual is buying London-based Gartmore Investment Management for £1.03bn (E1.7bn) from the Royal Bank of Scotland (RBS). Gartmore with £54bn under management was acquired when RBS took over NatWest Bank.
"The acquisition of Gartmore gives us immediate scale and global brand name credibility, backed by excellent management and strong investment performance," says Dimon McFerson, chairman and chief executive officer of the Ohio-based insurer.
Under the terms of the agreement, Gartmore’s investment philosophy and process will remain unchanged. "We fully support Gartmore’s management team and its operations and will make not changes as a consequence of the acquisition," says McFerson.
In Dublin, Ulster Bank Investment Management, also part of the NatWest group is also up for sale, although a final agreement has not been reached yet.