Daiwa, Sumitomo Mitsui Agree to Asset Management Merger

Daiwa Securities Group Inc. and Sumitomo Mitsui Financial Group Inc. agreed to merge asset management units, said people familiar with the situation. Sumitomo Mitsui will take a 50.1 percent stake in the combined company, and Daiwa will own more than 20 percent, said the people, who asked not to be identified before an announcement in Tokyo this afternoon. The move renews ties between Daiwa and Sumitomo Mitsui, which had an investment-banking joint venture until 2009.