BlackRock Inc. announced Monday that it plans to acquire Primasia Investment Trust Co., a Hong Kong asset manager, in an effort to enter the country’s domestic mutual fund market.
The price of the deal, which is expected to closed by the end of the year, was not disclosed.
The acquisition is expected to give BlackRock [BLK] a licence to run a fund management firm in Taiwan.
The New York-based company already sells sells offshore funds in Taiwan, but the licence will let it open proprietary funds in Taiwan.
The country has been slow to allow third-party providers to sell proprietary funds within its borders. Currently, Taiwan has 39 fund firms, including ING and Prudential.
"The acquisition of Primasia will give BlackRock the opportunity to expand its current range of products in Taiwan," BlackRock said a statement.
Primasia had $58 million of assets under management as of July 31.
"Asia represents a significant opportunity for BlackRock, and Taiwan, with its unique blend of investors and investment needs, is an important market for us in Asia," Lin-Yun Chang, head of Asia ex-Japan retail and the country head of Taiwan for BlackRock, said in the statement.