With the deal, Eastspring will have access to a wide customer base in a country with one of the largest and fastest-growing asset management markets in Southeast Asia.

Singapore-based Eastspring Investments, the asset management arm of global insurer Prudential, has signed an agreement to acquire a 50.1 percent stake in Bangkok-based Thanachart Fund Management (TFund) from Thanachart Bank (TBank) and Government Savings Bank, the firm announced in a press release on Tuesday.

The deal is worth 4,208 million Thai baht ($137.25 million), and is contingent on regulatory approval and the merger of TBank and TMB Bank, which was previously agreed on 8 August, the announcement noted. The merger of banks will create Thailand's sixth-largest bank, with 10 million retail customers and over 2 trillion Thai baht ($62.6 billion) in total assets.

The acquisition of TFund complements Eastspring’s acquisition of 65 percent of TMB Asset Management (now TMBAM Eastspring) in September 2018. Like its TMBAM acquisition, Eastspring has an option to increase ownership of TFund to 100 percent in the future, the announcement said.

Commitment to Thai Market

«By signing this agreement, we are seizing the opportunity to acquire a highly attractive business in the growing Thai market and work more closely with strong partners - TMB and TBANK,» Nic Nicandrou, chief executive of Prudential Corporation Asia, said. He added that Prudential will become Asia-led following the demerger of the group's U.K. and Europe business

«The acquisition of TFUND not only complements our existing business but allows us to accelerate our growth and extend our presence in this dynamic market,» Nicandrou said.

TFund is Thailand's eighth-largest mutual fund manager, with 212 billion Thai baht ($6.92 billion) of mutual funds under management as of June 30, 2019. According to Eastspring, TFund and TMBAM Eastspring will collectively be the fourth-largest asset manager in Thailand, with a market share of 12 percent and THB 653 billion Thai baht ($21.3 billion) in assets under management.

Eastpsring has $216 billion in assets under management as of June 30, 2019.