AMP (ASX:AMP) share price in focus after Macquarie (ASX:MQG) asset sale agreement

AMP is offloading an asset to Macquarie…

| More on:
Jumbo Interactive staffers shaking hands around table agreeing to an acquisition

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The AMP Ltd (ASX: AMP) share price could be on the move on Thursday.

This follows news that the embattled financial services company is offloading another asset.

What did AMP announce?

This morning AMP announced that it has entered into a binding agreement with Macquarie Group Ltd (ASX: MQG) to sell its AMP Capital's Global Equities and Fixed Income (GEFI) business.

According to the release, Macquarie Asset Management will acquire the business for a consideration of up to $185 million.

Management notes that this sale delivers on AMP Capital's strategy to focus on high-growth opportunities in private markets across real estate, infrastructure and associated adjacencies. It also believes it is an important step in preparing the AMP Capital business for its planned demerger in the first half of 2022.

Furthermore, it highlights that the transaction delivers on the previously announced strategy for the AMP Capital public markets business to increase the scale of GEFI through partnerships or sale. As part of the Macquarie Group, it believes GEFI will be positioned to further improve its high-quality client service offering and to expand its client base and product set over time.

AMP Capital advised that it is also in the process of transferring the Multi-Asset Group business to AMP Australia to create an end-to-end superannuation and investment platform business.

AMP's Acting Chief Executive Officer, James Georgeson, said: "In bringing together two well-known Australian investment businesses with strong track records, we're pleased to deliver such a positive outcome for our clients, our GEFI teams and AMP shareholders. Our review of the GEFI business last year showed it had strong investment capabilities and performance but needed greater scale and broader distribution reach to compete effectively."

"Macquarie is a high quality and respected manager, with a complementary culture and capabilities, well-placed to develop the business and deliver continued strong investment performance for its expanded client base. We are committed to working with Macquarie to integrate and transition our clients and teams, and to explore new partnership opportunities to enhance the products and services we both provide to our clients," he added.

The AMP share price is down 28% since the start of the year. Shareholders will no doubt be hoping for better in the second half of the year.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »

Father in the ocean with his daughters, symbolising passive income.
Dividend Investing

I'd spend $8k on these ASX 200 shares today to target a $6,102 annual passive income

I believe these ASX 200 shares will continue rewarding passive income investors for years to come.

Read more »

Three businesspeople leap high with the CBD in the background.
Share Market News

Boom! ASX 200 blasts to new record highs

ASX 200 investors just sent the benchmark index into uncharted territory.

Read more »