LONDON - Amvescap PLC is beefing up its Canadian mutual fund business with a planned $1.8 billion deal for Trimark Financial Corp. of Toronto, the sixth-largest fund company in Canada.
The deal, announced Tuesday, is expected to be complete by the end of August and would create the second-largest mutual fund company by assets in Canada, the companies said. Shareholders are to get a combination of cash and stock.
The deal would boost Amvescap's assets under management in Canada to about $24 billion, from $6.6 billion on March 31. It managed $391.6 billion of assets worldwide on March 31.
Charles Brady, chairman and chief executive of Amvescap, said the combination would increase distribution of both companies' funds through financial intermediaries, such as banks. Amvescap has 32 funds in Canada, which it sells under the Aim Funds brand; Trimark has 33. Mr. Brady said the funds would be co-branded.
Robert Hain, president and chief executive of Amvescap's Canadian fund arm, will be chief executive of the combined companies. Amvescap said it plans to retain all 800 Trimark employees.