Prudential Announces Joint Venture With Italian Bank

Published July 25, 2001, 1:00 a.m. EDT

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Acquires 5% Interest in Banca Popolare di Bergamo

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Prudential Financial announced today a joint venture with Banca Popolare di Bergamo - Credito Varesino (BPB - CV) , in which Prudential will acquire a 'significant' interest of the bank's asset management business, Finanzattiva Gestione SGR.

Prudential Financial will make a strategic investment in the joint venture, initially investing 5% through a reserved capital increase, with the option to increase the investment to 35% in coming years, the company said. The initial investment amounts to $4.5 million (US).

The deal pairs one of the 10 largest banking groups in Italy with one of the largest global financial institutions. While Prudential has had a presence in Italy through its life insurance products, the deal will allow the firm to offer investment products in Italy for the first time. The joint venture, called BPB Prumerica Global Investments SGR, will focus on the development, marketing and sale of investment products to retail and institutional markets.

The joint venture will leverage BPB - CV's brand, distribution and management expertise while Prudential will develop products and provide its international management expertise.

'BPB's strong brand, reputation and commitment to meeting customer needs makes them an ideal partner,' said Steven Pelletier, president of Prudential Financial's International Capital Group, in a statement. 'Investing in this business and developing a joint venture gives us immediate access to this important market.'

Prudential Financial has signed similar joint venture deals in Japan, Mexico, Korea and Taiwan as part of the company's global expansion strategy.