Allianz Global Investors has reached an agreement to acquire the asset management business of United Overseas Bank for approximately $430 million, as the German firm seeks to strengthen its footprint in Asia.

UOB stated on Wednesday that under the deal, the bank and Allianz Global Investors will establish a long-term distribution partnership, offering UOB's clients access to a broader range of investment solutions.

UOB indicated it expects to record a pre-tax gain of around S$330 million ($257.4 million) from the transaction, excluding one-time transaction costs. This move is part of the bank's efforts to concentrate on its strategic priorities.

As of the end of December, UOB Asset Management managed assets totaling approximately S$42 billion. Allianz Global Investors, the asset management arm of Allianz SE, said on Wednesday that the deal will boost the assets it manages for clients in the Asia-Pacific region to over €170 billion ($196.04 billion).

The eight markets involved in the transaction are Singapore, Brunei, Indonesia, Japan, Malaysia, Taiwan, Thailand, and Vietnam. Allianz Global Investors noted that the acquisition will provide access to high-growth markets like Thailand and Vietnam, while also expanding its scale in existing markets such as Singapore and Taiwan.

The transaction is expected to be completed by 2027, pending regulatory approvals.