U.S. giant Franklin Templeton's plans to merge with Samsung Active Asset Management in Korea have hit a road block.
U.S. investment firm Franklin Templeton said in March it would merge its business in Seoul with a subsidiary of Samsung's asset management arm. Now, the Korean money manager has postponed the deal, according to «Business Korea».
The publication suggested the merger is being held up over losses at Franklin Templeton’s bank-loan fund. The fund suffered losses after one of the portfolio firms defaulted in October 2017 – information only recently disclosed to investors.
South Korea's integrated financial regulator is planning to investigate the matter. The two firms had planned to manage the new business, Samsung Franklin Templeton, with equal representation. Samsung's active asset management firm said it is not scrapping the deal completely, but putting it off to a later date.
