US fund giant Legg Mason has acquired Edinburgh-based active equity fund group Martin Currie Investment Management.
The deal is expected to be completed in the fourth quarter of 2014, at which point Martin Currie will become one of Legg Mason’s suite of affiliates.
As part of the deal, Martin Currie will be combined with Legg Mason Australian Equities, adding its $2.5bn (£1.5bn) in assets to Martin Currie’s $9.8bn in assets under management.
Joe Sullivan, president and chief executive of Legg Mason said the acquisition of Martin Currie “fill[s] our largest product gap” and emphasised the firm’s key capabilities in global emerging markets, Asian, European and global equities”.
Willie Watt, chief executive of Martin Currie, said the tie-up with Legg Mason would mean Martin Currie still had “investment and operational autonomy”, and said the firm’s “client proposition remains unchanged”.
Legg Mason said that, as part of the deal, the senior management of Martin Currie have signed new long term contracts to remain at the firm, “providing continued strength and stability”.
Martin Currie joins a large group of independent affiliate companies that have been acquired by Legg Mason, which include Brandywine Global, ClearBridge Investments, The Permal Group, QS Investors, Royce & Associates and Western Asset Management.
