By Kosaku Narioka and P.R. Venkat

Nomura Holdings plans to buy Macquarie Group's public asset management business in the U.S. and Europe for $1.8 billion in a bid to strengthen its investment management business, even amid volatile market conditions due to U.S. tariff policies.

The Japanese financial company said Tuesday that it would will buy three companies from Macquarie, based in Delaware, Luxembourg and Austria, which manage $180 billion in retail and institutional client assets across equities, fixed income, and multi-asset strategies.

Nomura Chief Executive Kentaro Okuda said that strengthening its asset management business has been a key part of its mid-term business strategy even though the U.S. market is currently unstable.

"Recent market moves are worrisome, but we've determined that we should move forward with this investment from the mid- to long-term perspectives," Okuda said.

Macquarie said that Nomura would acquire all relevant assets, teams, offices and operating platform, ensuring continuity for clients.

As a result of the transaction, Macquarie's asset management division will be more focused on global private markets business, the company said. Macquarie will retain its public investments business in its home market of Australia, it said.

The all-cash transaction is expected to be completed by the end of this year, subject to regulatory approvals.

As part of the transaction, Nomura and Macquarie have agreed to work together on product and distribution opportunities.

After the deal, the total assets under management for Nomura's investment management franchise are expected to increase to about $770 billion, with more than 35% being managed on behalf of clients outside Japan, the company said.

Nomura said the acquisition would bring well-established distribution networks in the U.S. for both retail and institutional businesses and significantly expand its global capabilities and client footprint of its investment management division.

It will gain a business with more than 700 employees which generated annualized net management fees of about $700 million as of September.

Nomura said a team led by Shawn Lytle, head of Americas for Macquarie, would continue to manage the business following the acquisition.

The Japanese company is planning several initiatives, including providing Nomura's asset management offerings to retail and institutional clients, leveraging the business's existing distribution channels.

The acquisition will strengthen Nomura's recurring revenue pool and help reduce earnings volatility, according to Tomoya Suzuki, senior credit officer at Moody's Ratings.

Write to Kosaku Narioka at kosaku.narioka@wsj.com and P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

April 22, 2025 02:25 ET (06:25 GMT)

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