American financial giant Goldman Sachs Group Inc. is acquiring NN Group NV’s asset-management arm for 1.6 billion euros or $1.9 billion, Bloomberg reported.
Under the agreement, Gold Sachs Asset Management will enter into a 10-year partnership, with the combined company providing asset management services to the NN Group.
NN Investment Partners Chief Executive Satish Bapat will continue to lead the asset-management arm but will step down from NN’s management board effective immediately.
Goldman Chief Executive Officer David Solomon the transaction will allow the firm to boost its growth plans and expand its asset-management platform. NN Investment has around $355 billion of assets under supervision, with the majority backed by environmental, social, and governance criteria.
Goldman said the transaction will make the Netherlands a significant market in its European businesses, following the key growth of Amsterdam, which grew to a key hub in the region after the British exit.
NN Group said the transaction will boost its excess capital, which will be available for additional returns to shareholders. GS is down 1.20%, while NN is down 1.11%.