Deutsche Bank announced today that it will acquire Zurich Scudder Investments for $2.5 billion. For its part, Zurich will acquire a 76% stake in Deutsche Bank’s Deutscher Herold and 100% of Deutsche Bank’s insurance interests in Spain, Portugal and Italy, an acquisition valued at $1.5 billion. Threadneedle Investments, Zurich’s U.K. asset management group, was not part of the deal and will remain with Zurich Scudder.

The deal also outlines a joint distribution agreement in which both groups will distribute insurance, investment and banking products throughout Europe and the U.S. Details of the distribution agreement are still being worked out, the companies announced.

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