Nationwide Mutual Wins Auction for Gartmore, Builds Global Asset Management Ambitions

Nationwide Mutual, a leading player in the US pension plan market, has successfully bid pounds 1.03 billion to acquire British fund manager Gartmore, marking a significant expansion of its global asset management footprint. The acquisition, which includes pounds 54 billion in assets under management, will lift Nationwide's total group assets to over pounds 127 billion. The deal, subject to regulatory approval, is expected to be completed by June 30.

Key Takeaways:

• Nationwide Mutual, a specialist in the US pension plan market, has acquired Gartmore for pounds 1.03 billion, marking a significant expansion of its global asset management ambitions.
• The acquisition adds pounds 54 billion in assets under management, lifting Nationwide's total group assets to over pounds 127 billion.
• The deal is subject to regulatory approval and is expected to be completed by June 30.
• CGU, a British insurer and funds manager, was a favored bidder but ultimately outbid by Nationwide Mutual.
• The acquisition will not have a material impact on Royal Bank of Scotland (RBS), which is paying over pounds 20 billion worth of its own shares and cash for NatWest.
• Gartmore's presence in London will be retained, using existing systems and management.

Statistics:

• Nationwide Mutual paid pounds 1.03 billion to acquire Gartmore.
• The acquisition adds pounds 54 billion in assets under management to Nationwide's total.
• The combined Gartmore group will have over pounds 127 billion in assets under management.
• The deal is expected to be completed by June 30.
• CGU, a British insurer and funds manager, was a favored bidder but ultimately outbid by Nationwide Mutual.

Sources:

• "Unexpected American bidder wins Gartmore", The Financial Times, January 19, 2006

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