NEWS
03/23/2016 08:50 EDT | Updated 03/24/2017 01:12 EDT

Sun Life to buy out CIMB's 51% stake in Indonesian joint venture, remain allies

TORONTO — Sun Life Financial Inc. (TSX:SLF) is buying out a long-time partner to acquire full control of their joint venture in Indonesia.

The Canadian life insurance company didn't say what it will pay for the remaining 51 per cent stake in PT CIMB Sun Life, but says the deal will likely close by the end of September, after regulatory approvals.

The Toronto-based company says it plans to integrate CIMB Sun Life with its separate Indonesian subsidiary.

Sun Life Financial Indonesia is also extending a deal with PT Bank CIMB Niaga, one of Indonesia's largest banks and part of the CIMB Group.

CIMB is one of the world's largest Islamic banks and one of the largest in the ASEAN countries, with its headquarters in the Malaysian city of Kuala Lumpur.

The agreement with CIMB Niaga will allow Sun Life to market its products through the bank's 618 branches throughout Indonesia.

Sun Life is one of Canada's largest life insurance and wealth management companies.

The Canadian Press