Japan’s Dai-ichi Life Holdings is set to acquire a 15% stake in British asset manager M&G, becoming its largest shareholder in a deal valued at over £850 million.

Announced on Friday, the strategic partnership will establish M&G as Dai-ichi’s preferred asset management partner in Europe, with expectations of generating at least $6 billion in new business over the next five years. Half of this will originate from Dai-ichi’s balance sheet, and the rest through joint initiatives, including selling M&G products in Asia.

The agreement grants Dai-ichi the right to appoint a board member, contingent on holding the 15% stake, and imposes a two-year limit on increasing the stake above 19.99%.

This follows another significant UK-Japan financial collaboration earlier in the year between Legal & General and Meiji Yasuda. M&G, spun out from Prudential in 2019, has struggled since becoming independent but has recently shown signs of recovery under CEO Andrea Rossi, who initiated a cost-cutting plan that boosted profits.

M&G’s shares rose 5.5% following the news. The partnership is seen as a significant vote of confidence in M&G and as a move by Dai-ichi to expand its global presence.