Japan's Daiwa Capital Markets will acquire Belgium-based KBC Group's global convertible bond and Asian equity derivative businesses for nearly $1 billion.
Daiwa Capital Markets is the investment banking arm of Japanese financial services major Daiwa Securities Group. The deal would help in strengthening Daiwa's presence in Asia as well as boost its derivative business.
The Japanese firm would snap up global convertible bond and Asian equity derivatives for about $1 billion, Daiwa Capital markets said in a statement today.
Out of the total amount, $200 million would be for assets, including staff and IT infrastructure while the rest would be for the trading position.
"The businesses being acquired by Daiwa are leading market players in the sales, trading and structuring of global convertible bonds and Asian equity derivatives.
"These businesses employ approximately 150 staff across offices in London, New York and Hong Kong," it added.
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The deal is anticipated to close in the fourth quarter of 2010.
"By acquiring these KBC businesses, Daiwa immediately becomes a significant player in the global convertible bonds and Asian derivatives markets," Daiwa's Global Head of Derivatives Dominique Blanchard said.
Brussels-based KBC is a leading financial services group.
Commenting on the deal, KBC Group's CEO Jan Vanhevel said the divestment, frees up substantial capital resources while further reducing its risk profile.