Edelweiss to acquire JP Morgan's mutual fund business in India

Edelweiss Asset Management on Tuesday announced the acquisition of global giant JP Morgan's mutual fund business in India that has assets worth over Rs 7,000 crore, marking yet another exit of a foreign fund house from over Rs 13 lakh-crore industry.

Under the deal, Edelweiss will acquire all onshore fund schemes managed by JP Morgan Asset Management India including its country-based onshore mutual fund business and the international fund of funds, subject to regulatory approvals, Edelweiss said in a statement.

Post acquisition, the asset under management (AUMs) of the combined entity would be Rs 8,757 crore.

Along with the schemes, Edelweiss said it is committed to absorbing the majority of employees of JP Morgan ensuring business continuity as well as a platform for enhanced growth.

The deal size could not be ascertained immediately.

In the past few years, a number of global players have exited the Indian mutual fund business. Reliance Capital Asset Management (RCAM) last year had announced the takeover of global giant Goldman Sachs' mutual fund business in India for Rs 243 crore in an all-cash deal.

Standard Chartered sold its mutual fund business in India to IDFC in 2008, Fidelity sold its mutual fund to L&T Finance in 2012, while last year HDFC MF acquired Morgan Stanley's fund business.

Besides, Birla Sunlife had acquired ING Mutual Fund, Kotak Mutual Fund has bought PineBridge Mutual Fund and Pramerica has taken over Deutsche Bank's MF business in India.