Fortis bank agrees to sell stake in Chinese fund manager

UTRECHT: Banking and insurance group Fortis said Thursday it had agreed to sell its 49 percent stake in the Chinese fund manager ABN Amro Teda for 165 million euros (245 million dollars).

The Belgian-Dutch bank will sell the stake to the British-based banking and insurance group Old Mutual, according to a joint statement released by the companies.

"This partnership establishes Old Mutual's presence in the Chinese asset management market and lays the foundations for Old Mutual Group's further expansion in Asia," it said.

"The sale is the result of regulatory compliance following Fortis's acquisition in April 2008 of the asset management business of (Dutch bank) ABN AMRO Group," it said, and is subject to approval by Chinese regulators.

"The transaction will not have a material impact on the Fortis net profit per share," the statement said, but will provide "solvency relief" for Fortis.

Asset manager ABN Amro Teda is a joint venture of the Dutch bank and Teda, a big Chinese investment company.