Non-banking finance company Sundaram Finance is all set to buy out BNP Paribas Asset Management's complete holding in Sundaram BNP Paribas Asset Management Company and Sundaram BNP Paribas Trustee Company.

After acquirement of BNP Paribas' 49.9% equity stakes, the two firms will become wholly owned divisions of Sundaram Finance.

In a declaration, Sundaram Finance stated that the agreement is subject to the necessary regulatory nods.

The buy out was necessitated as BNP Paribas SA acquired the banking and financial services activities of the Fortis Group outside Netherlands, which resulted in its indirectly acquiring interests in Fortis Investment Management
(India) Private Limited and Fortis Trustee (India) Private Limited, the asset management and trustee company respectively of Fortis Mutual Fund in India.

According to Indian rules, no one can have two mutual fund companies and as such BNP Paribas has to make a decision between Fortis Mutual Fund and Sundaram BNP Paribas Asset Management Company.

According to Sundaram Finance, there will be no impact on the remaining three joint ventures with BNP Paribas - Sundaram BNP Paribas Home Finance, Sundaram BNP Paribas Fund Services and BNP Paribas Sundaram Global Securities Operations Private Ltd.

No financial details - the buy out price, mode of valuation, agency valuing the stakes- were revealed by Sundaram Finance. (With Inputs from Agencies)