AUSTRALIA/UK - Mellon Financial Corporation has sealed an agreement with Australia's NSP Buck to acquire its remaining 70% holding in the employee benefits company for an undisclosed amount.
NSP Buck is Australia's second largest such firm with A$14bn assets under management. The firm has more than 500 staff, based mainly in Sydney and Melbourne, with over 450 corporate clients including GM, Microsoft, IBM, Alcoa and Citigroup.
The firm will remain as a stand-alone entity and will be managed by the Mellon unit, London-based Mellon Global Investments, which distributes Mellon’s offshore (excl-US) asset management products on global basis.
Commenting on the move, Jon Little, senior vice president of Mellon Global Investments said that the acquisition provided a “valuable springboard” into the Australian market which is set to be worth around A$1trn by 2010.
“The NSP Buck platform provides us with significant scope for the development of all our major business lines - asset management, asset servicing and benefits consulting, he added.
The employee benefits business has continued to expand in Australia as the responsibility for retirement savings continues to shift from government to individuals, through further increases in compulsory contributions rates, and the expanding use of employee share ownership, said Mellon.
NSP Buck provides superannuation services, including consulting, administration to master trusts, and employee benefits plans and education. Mellon aims to compliment this with its capabilities in retirement management, transactional and custodial services as well as funds management.
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