Deal Collapses due to a Disclosure Problem
The merger plan between Samsung Active Asset Management Co., a wholly owned fund manager subsidiary of Samsung Asset Management, and Franklin Templeton Investment Trust Management Co., which is wholly owned by Franklin Templeton Capital Holdings, has ultimately fallen apart.
Samsung Active Asset Management announced on Aug. 26 that it has decided to cancel its merger contract with Franklin Templeton Investment Trust Management, which was signed in March last year. The two companies cited changes in investment environments at home and abroad as the main reason for scrapping the merger deal.
Samsung Active Asset Management sought the merger with Franklin Templeton Investment Trust Management to expand its product lineups and strengthen its competitiveness in asset management. However, problems surfaced after a company that invested in the Franklin Templeton's so-called “bank-loan fund” had been liquidated, incurring loss, and Franklin Templeton Investment Trust Management failed to immediately disclose it.
The two companies delayed the merger process after the belated notice and Franklin Templeton Investment Trust Management saw its assets under management decrease sharply in the process. Accordingly, Samsung Active Asset Management has decided to scrap its merger plan.