Mirae Asset Global Investments has agreed to buy New York-based exchange-traded funds (ETFs) provider Global X.
Global X, which is partly owned by JP Morgan, manages $10 billion in ETFs and the deal would mark the Asian fund house's first steps into the $3 trillion US ETF market.
The Korean company already has exposure to the ETF market through existing ETF businesses, such as Horizon in Canada, BetaShares in Australia, and Tiger ETF in Asia.
These ETF businesses represent $30 billion in assets under management combined.
Partnering with Mirae Asset will give Global X access to expand its thematic, income and international ETF solutions and to broaden its distribution capabilities.
'This merger is a landmark event for the Mirae Asset Global ETF business development,’ said Taeyong Lee, president and global head of ETFs at Mirae Asset.
'With Global X on board, we are now connecting one of the most successful US ETF firms to a prominent Asian-based global ETF manager, creating a powerful ETF platform.’
The transaction, currently pending third party approvals, is expected to close in the third quarter.