Power Corporation of Canada and Mackenzie Financial are buying additional shares of the China Asset Management Company (China AMC). Once the transactions are complete, the two Canadian firms will own more than a quarter of the company.

Established in 1998 and one of the first asset management companies approved by the China Securities Regulatory Commission, China AMC serves more than 40 million retail investors and has 400 institutional mandates. As of June 30, 2016, the firm had more than $215 billion (CDN) in assets under management.

Power Corporation announced last week that it had agreed to purchase an additional 3.9% equity interest in the Chinese firm, bringing its ownership level to 13.9%. Power Corporation's indirect subsidiary, Mackenzie Financial, is also buying a 13.9% interest in the company. The seller is a Chinese state-owned enterprise.

"We have great confidence in the leadership of China AMC and this investment allows Power Corporation to increase its exposure to the dynamic Chinese asset management market alongside CITIC Securities, China's largest securities dealer," says Peter Kruyt, Vice-President of Power Corporation and Chairman of Power Pacific Corporation Limited.

The transaction is expected to close in the first half of 2017 and be accretive to Power Corporation's earnings.