Aegon has agreed to buy BlackRock’s UK defined contribution platform and administration business of £12bn of assets and 350,000 customers.
The deal will create a £30bn platform-based workplace savings business within Aegon while BlackRock’s £65bn UK defined contribution business will focus on investment management.
David Blumer, head of BlackRock EMEA, said: “The pensions and investment landscape has changed significantly in the UK over the last few years.”
Mr Blumer said Aegon’s broad retail product and digital capabilities will best serve the increased demand from employers for holistic retirement solutions in the future.
He said once the deal is complete BlackRock will continue to grow its DC Investments Business by providing investment products to DC schemes, consultants, master trusts and pension providers.
Paul Bucksey from BlackRock will be appointed managing director of the combined workplace business.
Adrian Grace, chief executive of Aegon UK, said: “The combined strength and breadth of expertise makes us a compelling choice.
“With employers demanding additional solutions to meet employees’ needs to and through retirement, workplace savings are no longer just about traditional DC pensions.
“This makes it an exciting market and with an expectation it will triple in size over the next 10 years, we are well positioned to take advantage.”
BlackRock already provides investment management for Aegon clients.
Meanwhile BlackRock will retain its role as the primary investment manager for the clients who will transfer to Aegon as part of the transaction.
The transaction is subject to regulatory and court approval.
