DBS Bank, Sumitomo Trust & Banking and Nikko Asset Management have agreed to combine DBS Asset Management and Nikko AM into a firm overseeing more than $150 billion, one of Asia’s biggest investment businesses, the firms announced today.

The deal confirms widespread media speculation that a deal was imminent.

Nikko AM will acquire DBS AM for S$137 million (around $104 million) and DBS will take a 7.25 per cent interest in Nikko AM.

Under the terms of the deal, DBS and Nikko AM will forge a non-exclusive distribution agreement through which Nikko AM’s portfolio of investment products can be sold through DBS’ network.

“Asia is creating wealth faster than anywhere else in the world and as a bank born and bred in this region, we are well placed to tap this growth,” Piyush Gupta, chief executive of DBS, said in a statement.

Changsheng Fund Management, a Chinese affiliate which is 33 per cent owned by DBS AM, will not be part of the transaction and be held directly under DBS Group subject to regulatory approvals, the statement added.