Principal Financial Group has signed a $198 million deal to acquire Mexican pension-fund manager, HSBC Afore, from the Mexican unit of HSBC Holdings. The deal, which is awaiting regulatory approvals, is expected to close by early third quarter 2011. HSBC Afore will be merged into Principal’s existing pension fund business in Mexico, making Principal Afore the country’s sixth largest in assets under management. The deal will raise Principal Afore’s pension assets by $2.9 billion or 62% and add 1.6 million customers. Principal was advised by Greenhill & Company on the deal.
Click here for the release from Business Wire.