Dexia, the French-Belgian banking group which was hit by the 2008 financial crisis, has agreed to sell its asset management business to Hong Kong-based GCS Capital for HK$3.84 billion ($496 million). Meanwhile, GCS has entered a business collaboration deal with Industrial and Commercial Bank of China. 

GCS Capital entered into exclusive negotiations with the Brussels-based bank in early December 2012 to take over Dexia Asset Management. DAM is a global asset management business with some €80 billion ($104 billion) in assets and around 550 staff worldwide. 

The bank is making the last of its main disposals, as part of an "orderly resolution" programme that started in October 2011.

"GCS Capital plans to maintain the current regional footprint revolving around competence centres in Brussels, Paris, Luxembourg and Sydney. It will also seek to deepen the already robust commercial relations which Dexia Asset Management has developed with its institutional and private clients, and particularly the well-established collaborations with Belfius and Banque Internationale à Luxembourg," the bank said. 

China deal

Besides its deal with Dexia, GCS Capital said it has also signed a strategic partnership agreement with Industrial and Commercial Bank of China, China’s largest banking group. Through this arrangement, DAM will "gain greater insights into emerging markets, access to both market-leading investment products and the distribution network of a premier financial services institution in Greater China", it said.

Under the arrangement, the Chinese bank will give DAM preferred asset management partner status and DAM products will become available to investors in Asian markets through ICBC’s branch network.

"Furthermore, GCS Capital also sees a significant opportunity to offer Asia-focussed solutions to DAM’s existing European and Australian investors," GCS said.

GCS Capital has operations in London and Beijing.