ING, the Dutch banking group, has agreed to sell its 33.3% stake in its investment management joint venture to partners China Merchants Bank and China Merchants Securities.
As per the terms of the agreement, ING will receive a total cash consideration of €98m, while the deal would close in the second quarter of 2013 upon receiving regulatory approvals.
The company said that the stake sale in Chinese JV is a part of the previously announced divestment of its Asian insurance and investment management businesses.
China Merchants Fund, which has nearly 3% market share in the country’s mutual funds market, was set up in 2002.
European Union’s anti-trust regulator has ordered ING to dispose of insurance and investment management divisions by 2013, to repay the state aid it received during the 2008 financial crisis.