Aegon is to acquire BlackRock’s defined contribution platform and administration business for an undisclosed sum.
The deal sees Aegon acquires around £12bn of assets and 350,000 customers, creating a workplace savings platform with total assets of £30bn.
BlackRock head of DC Paul Bucksey will be managing director of the merged business.
Following the transaction, the US giant asset manager’s £65bn UK DC business will focus on investment management.
Aegon UK chief executive Adrian Grace says: “The combined strength and breadth of expertise makes us a compelling choice. With employers demanding additional solutions to meet employees’ needs to and through retirement, workplace savings are no longer just about traditional DC pensions.
“BlackRock’s renowned strength as a leading investment manager means it retains its role as the primary investment manager for the clients who will transfer to Aegon as part of the transaction.”
BlackRock head of EMEA David Blumer adds: “The pensions and investment landscape has changed significantly in the UK over the last few years. BlackRock believes Aegon’s broad retail product and digital capabilities will best serve the increased demand from employers for holistic retirement solutions in the future, and are a perfect partner to deliver on our DC platform and administration clients’ growing needs.”
The transaction, including the transfer of assets and liabilities to Aegon is subject to regulatory and court approval.
Earlier this year Money Marketing revealed Aegon has been in talks with L&G over acquiring Cofunds.