A unit of Principal Financial Group Inc. has agreed to acquire HSBC AFORE S.A. de C.V. from a unit of HSBC Holdings P.L.C. for the equivalent of $198 million.
Principal Financial Group S.A. de C.V. manages the equivalent of about $4.7 billion in pension assets in Mexico.
HSBC AFORE manages the equivalent of $2.9 billion in retirement account assets in the country for 1.6 million customers.
Principal, Des Moines, Iowa, (NYSE:PFG), and HSBC, London, hope to get the regulatory approvals they need to close on the deal between June 30 and Sept. 30.
Principal plans to combine the Principal Financial and HSBC AFORE businesses under the name Principal AFORE. The 1,100 HSBC bank branches in Mexico would continue to distribute the Principal AFORE products, Principal says.
In Mexico, an “AFORE,” or “Administradora de Fondos para el Retiro,” is an individual retirement account manager.