The deal exposes the risks associated with the high yield securities and is likely to make bank borrowing through bonds more expensive in the short term.
The deal will create an entity with $45 billion under management in Asia, but there are obstacles to integrating the businesses, note industry observers.
Regulators reject National Australia Bank's revised proposal to acquire Axa Asia Pacific, marking the third failed insurance M&A deal in the region year-to-date.
Malaysia's Hong Leong Financial Group and Japan's Mitsui Sumitomo Insurance join forces in a strategic partnership to strengthen their life and general insurance operations.