Orix Buys Asset Manager Robeco From Rabobank

TOKYO--Orix Corp. (8591.TO) said Tuesday it has agreed to buy Netherlands asset manager Robeco from Rabobank for about EUR1.94 billion ($2.56 billion), in what would be the largest acquisition ever by Japan's biggest financial services and leasing company.

Under the deal, Orix will pay Rabobank in cash and its own stock for a 90.01% stake of Robeco. Rabobank will retain the remaining 9.99% stake in the asset management firm.

The deal would help Orix strengthen the asset management business, giving it an opportunity to offer Robeco's financial products to its Japanese customers. Robeco, which was founded in 1929, had EUR189 billion in assets under management at the end of last year. The asset management firm has about 1,507 employees and has strong customer bases in Europe and the U.S.

Orix has been active in overseas investments over the past few years.

The company, which listed on the New York Stock Exchange in 1998 and which is more than 50% foreign-held, also operates in investment banking, life insurance, venture capital and in the financing of real-estate development.

It is also entering niche markets, including environment and energy-related businesses.

Orix will hold a press conference at 0800 GMT.

Write to Atsuko Fukase at [e-mail]

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