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IGM Financial unit buying 10% of Chinese investment firm

IGM Financial Inc. says its Mackenzie Financial Corp. subsidiary has agreed to pay the equivalent of $468 million to buy a 10 per cent interest in China Asset Management Co., Ltd.

The Winnipeg-based firm says the China AMC deal will diversify its business outside of Canada, where IGM primarily offers mutual fund and wealth management services through Investors Group and Mackenzie Financial.

“This acquisition gives IGM Financial the opportunity to participate in a rapidly-growing asset management industry in the world’s second largest economy,” said Jeff Carney, the president and CEO of IGM Financial, said in a release

China AMC had the equivalent of $215.2 billion of investment assets under management as of June 30. By comparison, IGM Financial had about $140 billion of assets under management as of Nov. 30.

Power Corporation of Canada — IGM’s Montreal-based corporate parent — previously acquired a 10 per cent ownership stake in China AMC in 2011.

IGM says the transaction is expected to close in the first half of 2017, subject to Chinese regulatory approvals and other conditions.

Article source: http://www.cbc.ca/news/business/igm-china-asset-1.3915181?cmp=rss