Under those agreements Deutsche Bank will acquire 100% of U.S.-based asset manager Zurich Scudder Investments excluding Scudder's UK operations (Threadneedle Investments) from Zurich for the equivalent of USD 2.5 billion.
Deutsche Bank will sell its 75.9% stake in 'Versicherungsholding der Deutschen Bank AG (VHDB)' (holding the stake in Deutscher Herold) and all of its insurance businesses in Italy, Spain and Portugal to Zurich. The due diligence findings confirmed a total price of EUR 1.5 billion for 100% of these insurance businesses, excluding Bonnfinanz, a financial agent network, and Deutsche Gesellschaft für Vermögensberatung (DGV), a real estate and mutual funds consulting business.
Additionally, both parties agreed on a comprehensive swap of businesses. Deutsche Bank will acquire all of Zurich’s German and Italian asset management businesses in exchange for Bonnfinanz and DGV.
Furthermore, a broad strategic cooperation agreement has been signed between Deutsche Bank and Zurich. The cooperation includes reciprocal distribution access with regard to insurance, asset management and banking products. Thereby, Deutsche Bank gains access to Zurich's retail and private client base in Europe while Deutsche Bank's retail and private clients across Europe benefit from Zurich's insurance products. Deutscher Herold will remain the exclusive provider of insurance products to Deutsche Bank’s retail and private clients in Germany. Deutsche Bank will become the preferred provider of institutional asset management services and will be one of Zurich's preferred investment banks for corporate and investment banking services.
With this transaction, Deutsche Bank strengthens its global asset management platform in the US, Europe and Asia-Pacific, enhances its position in the U.S. ultra high net worth market and focuses its overall Private Clients and Asset Management (PCAM) business portfolio.
The transaction is expected to close in the first half of 2002 and will require regulatory approvals, various consents, and clearances.