The wealth and asset management partnership between Manulife and Standard Life has been taken a step further as Manulife is set to acquire Standard Life Oversea Holding’s Canadian operations.

The wealth and asset management partnership between Manulife and Standard Life has been taken a step further as Manulife is set to acquire Standard Life Oversea Holding’s Canadian operations.

Subject to certain adjustments, the acquisition will set Manulife, or The Manufacturers Life Insurance Company, back C$4 billion ($3.67 billion) in cash at closing. The deal is expected to close in the first quarter of 2015.

"Beyond providing us with a complementary strengthening of our wealth and insurance businesses, the acquisition of Standard Life Investments' Canadian operations will add to our investment capabilities.  It will broaden the range of asset management products and solutions available to our clients in Canada and around the world," said Kai Sotorp, executive vice president, global wealth and asset management at Manulife.  

Standard Life first considered selling its Canadian operations several months ago; Manulife was particularly won over by the firm’s Quebec operations as the firm plans to expand in the province.

As well as asset management, the acquisition will allow Manulife to provide its customers with group benefits, group retirements, investment risk oversight and liability-driven investing services.

"Excluding transition and integration costs, after the first year we expect the transaction to be accretive by approximately C$0.03 to EPS per year over each of the next three years. It will also increase our earnings capacity beyond our 2016 core earnings objective of C$4 billion. This transaction, and the financing, maintain our strong capital position, and in no way inhibit our ability to pay dividends,” said Donald Guloien, president and chief executive of Manulife.

Manulife said in a statement that there will be “no significant immediate job losses” during the integration period, which will be transitioned within the next two years. The majority of Standard Life staff in Quebec will be kept, however Manulife said it will “choose the most capable people from each company”. Manulife intends to increase the number of staff in Quebec than Standard Life currently houses.