Union Bank of India, a public sector bank in India, said the bank will purchase 49% stake in Union KBC Asset Management Company & Union Trustee Company from KBC Asset Management NV. After the completion of aforesaid acquisition, both companies would become wholly owned subsidiaries of Union Bank of India.

The bank's board of directors on Aug. 26, 2015 approved in principle the purchase of 49% stake in Union KBC Asset Management Co. and Union KBC Trustee Company from KBC Participations Renta, (a group company of KBC Asset Management NV) and a shareholder of the said companies. The acquisition is subject to regulatory approvals.

Union KBC Asset Management and Union KBC Trustee are joint ventures established between Union Bank of India and KBC Asset Management NV in 2009 with 51% and 49% holding respectively.

Shares of the company gained Rs 8.35, or 4.8%, to trade at Rs 182.30. The total volume of shares traded was 426,327 at the BSE (2.20 p.m., Monday).