L&T Finance (LTF) has announced the acquisition of FIL Fund Management and FIL Trustee Company, which is focused on mutual fund business in India.

LTF, which is a subsidiary of L&T Finance Holdings, said that the deal is subjected to regulatory approvals. The company informed the stock exchanges in a regulatory filing about the new deal to acquire the Mutual fund business of Fidelity.

Y. M. Deosthalee, CMD of L&T Finance Holdings said that the company will gain access to products, scales and access to retail customers to grow profitably.

“With this acquisition we are one step closer to achieving our vision of being among the top players in the Indian mutual fund industry. We remain committed to that goal and look forward to building one of India's most admired asset management businesses,” he said.

Fidelity AMC, which was established in 2004, has an average asset under management (AUM) of Rs. 8,881 crore for the quarter till December 2011. Most of its asset under management, about 68 per cent is in equity. The company has a market share of 1.3 per cent.

L&T Financial Services had entered the mutual funds market through the acquisition of DBS Chola in January 2010. The company has increased its total average AUM to Rs 4,616 crore in the quarter till December 2011.