Manulife Financial headquarters in Toronto in 2012.Galit Rodan/The Globe and Mail
The Competition Bureau has decided that Manulife's $4-billion deal to acquire Standard Life's Canadian business won't limit consumers' options when it comes to retirement savings, workplace health plans or mutual funds.
The enforcement agency reviewed the pending tie-up of the businesses, which both offer group retirement and group benefits services, as well as individual wealth investment services. A "no action letter" was issued Friday, indicating the deal has cleared its review.
The Bureau said competition wouldn't be limited in the marketplace, since there are enough other players offering asset management services in areas such as group benefits plans and group retirement services.
Other insurers, banks and independent players have increased their focus on wealth management in recent years. Manulife was drawn to Standard Life both for its presence in Quebec as well as its wealth management business, which regulators require less capital to be held than they do of insurance providers.
The deal will almost double Manulife's group retirement assets under administration to more than $40-billion, bringing its business closer in line with market leader Sun Life Financial Inc., said analyst Tom MacKinnon, in a note after the deal was announced. It would also significantly bump up Manulife's mutual fund assets under management.