New York, – The US bank Wells Fargo has sold its division of pension plans “Insitutional Retirement & Trust” (IRT) to the company Principal Financial Group (PFG) for 1,200 million dollars, both companies announced.
This division of the financial institution Wells Fargo had at the end of 2018 with 827 million dollars in assets under management and 3.9 million clients with pension plans sponsored by public and private companies for profit, known as 401 (k).
“The IRT business is well managed, has won awards and is highly regarded in the market,” said Wells Fargo Equity and Investment Manager Jon Weiss, quoted in a note from his institution.
Weiss sent a reassuring message to the consumers of this product, assuring that the operation “benefits the clients, the participants in the plan and the members of the teams”.
After the announcement, the shares of the entity remained unchanged on Wall Street, although they fell 1.51 percent in the post-closing stock trades.
For its part, Principal Financial Group, also closed the official day without rises or falls but fell 2.85% in the operations after the closure of the parquet floor.
PFG, with headquarters in the state of Iowa and a staff of 16,000 employees, has a portfolio of 24 million customers, offering them products related to retirement, asset management and insurance.
“Retirement is at the heart of our business and is the core of our future,” said PFG CEO Dan Houston, who described the purchase as “a powerful combination for customers, employees and the shareholders, while solidifying our position among the three main leaders in the pension market in the United States. “
According to PFG, in addition to the 1,200 million dollars, the agreement foresees a profit of up to 150 million dollars linked to some incomes higher than expected and payable to Wells Fargo until two years after the closing of the operation (EFEUSA).