Samsung Asset Management Co. Ltd. unit Samsung Active Asset Management Co. Ltd. and Franklin Templeton Investment Trust Management Co. Ltd. agreed to end merger plans, citing changes in market conditions, The Korea Herald reported Aug. 26.
The integration had already been postponed in July 2018, after an agreement to merge was signed in March 2018. The move to terminate followed a decline in business at both companies that could affect investment flow, the report said, amid global uncertainties tied to disputes between the U.S. and China, and South Korea and Japan.
Year over year, Samsung Active's assets under management were down by 39 billion South Korean won, or 1.3%, as of Aug. 23, while Franklin Templeton Investment's AUM were down by 7.7 billion won, or 0.6%, the report noted, citing data from the Korea Financial Investment Association. Franklin Templeton Investment was also fined 50 million won in April for failing to disclose the liquidation of some of its portfolio companies.
Franklin Templeton Investments is wholly owned by the Singapore-based Franklin Templeton Capital Holdings Pvt. Ltd., which is in turn a majority-owned unit of U.S-based Franklin Resources Inc.
As of Aug. 26, US$1 was equivalent to 1,213.73 South Korean won.
