August 2021 Stock, Market, and Fund Overview – as per our site.
Goldman Sachs Acquires NN Investment Partners for €1.6 Billion
In a move that could signal a positive outlook for the future of the acquired business, Goldman Sachs has announced the acquisition of NN Group's investment arm, NN Investment Partners, for approximately €1.6 billion.
The deal, which was announced on August 19, marks an exception to the general rule that a company's stock price drops when it buys another company. In this case, the brief dip in the stocks was likely due to the overall market downturn on the same day.
Goldman Sachs plans to make NN Investment Partners a key pillar in its European operations. The acquisition will allow the American financial giant to manage around $190 billion (around €162 billion) in NN's assets.
The acquisition comes as Goldman Sachs seeks to expand its operations in Europe. David Solomon, the Chairman and CEO of Goldman Sachs involved in the merger with NN Group, has stated that the acquisition is a way to strengthen Goldman Sachs's position in the region.
NN Investment Partners will be integrated smoothly with minimal restructuring, according to Goldman Sachs. This approach is expected to ensure a seamless transition for the business and its clients.
NN Group's shareholders might appreciate the company focusing on its core business of insurance. The acquisition will allow NN Group to streamline its operations and focus on its core competencies.
The price-to-earnings ratio (P/E) for Goldman Sachs is 7.6 for this year, while NN Group has a P/E of 8.6. Goldman Sachs has a price-to-book ratio (P/B) of 1.1 for this year, while NN has a P/B of 0.3 (!).
NN Investment Partners is a fully functioning business, including distribution, which Goldman Sachs is acquiring. The acquisition will provide Goldman Sachs with a strong platform for growth in Europe.
Despite the announcement, both Goldman Sachs and NN Group's stocks barely changed. This suggests that the market may have already factored in the acquisition, or it could indicate a lack of market reaction to the news.
Overall, the acquisition of NN Investment Partners by Goldman Sachs is a significant move that could have far-reaching implications for both companies and the financial industry as a whole. As the deal progresses, it will be interesting to see how Goldman Sachs integrates NN Investment Partners into its operations and how the business performs under new ownership.
