On 19 February 2013, Orix announced that it has successfully acquired Robeco for 1.937 billion euro. We will describe this relatively new entry case by a Japanese firm to the Dutch market in the following sections.
Robeco is a well known international asset manager serving institutional clients and private clients, and has 189 billion euro under management as of 31 December 2012. ORIX Corporation (ORIX) is a diversified financial service that serves both corporate clients as private clients. It was established in 1964 in Tokyo, where it still has its headquarter. ORIX originated as a company purely focused on leasing, and practices that evolve around leasing contracts such as, issuing loans, and insurances. However, it has extended their reach to other practices since 1971. In 1971 a new office was opened in Hong Kong, which was the beginning of a strategic goal to become a more international and relevant player. As mentioned before, the activities expanded in the ...view middle of the document...
Orix will become the second biggest asset manager in Japan, after Nomura Asset Management, which has $280 billion under management as of Dec 31, 2012. ORIX believes that this acquisition will strengthen their capital position and expand in rapid growing markets in the US and in Europe. In addition, Orix will benefit from Robeco’s expertise in asset management. 1929. Furthermore, Orix mentions during their press conferences of 19 February 2013 that the acquisition will expand the client base through its new network of other group companies, acquire possible new small-sized quality assets, and become a bigger player in sustainable investments.
Roderick Munster, former Robeco CEO
Robeco’s former parent company, Rabobank Group, put Robeco up for sale because it wanted to realign its core business practices and want to boost its core tier one capital by this sale. The Rabobank has been in control of the company since 2001.
This entry case has received quite a lot attention from Dutch media and from people working in the financial sector because Robeco was one of the last Dutch owned asset managers that has a very good international reputation. Robeco was not a listed company and was 100% owned by Rabobank Group. The Rabobank is a
The time of ORIX to enter the asset management market is quite interesting. Since the financial crisis financial institutions has faced numerous risks, and this will not change as the banking industry remains in transition. However, money managers remain an interesting field for company such as Orix, because they generate a lot of revenue on a constant level. With this acquisition, Orix is now able to use Robeco’s distribution network and integrate other subsidiaries of the group.
In the case Robeco/Orix case, it would not have been better if Orix started a wholly owned subsidiary. It would simply take too much time to build a good track record in order to receive the amount of trust a well known asset manager has accumulated. Moreover, Orix is lacking senior know-how management in the field of managing money. These two explanations could be used to ratify its current takeover.