Nationwide Offers $1.64 Billion For Asset-Management Firm.

Nationwide Mutual Insurance Co., Columbus, Ohio, has secured a firm foothold in the European fund-management business with its agreement to buy Gartmore Asset Management plc from Royal Bank of Scotland Group plc for $1.64 billion.

Royal Bank of Scotland acquired Gartmore, which has $85 billion of assets under management, as part of its purchase of National Westminster Bank earlier this year. It is the United Kingdom's fifth-largest institutional pension-fund manager and seventh largest retail fund manager, Nationwide said. Gartmore's sale had been widely expected, and a number of insurers were seen as potential buyers, including Britain's CGU plc and SouthAfrica's Old Mutual plc.

Nationwide Financial, a publicly traded unit of Nationwide Mutual, said it would gain a strong international product line, while Gartmore would gain access to Nationwide Financial's retail and wholesale distribution channels.

"If Nationwide is looking for a foothold in Europe, it's absolutely as good as any," said Charles Landa, an analyst with SG Securities in London. He said Gartmore had bounced back in 1999 from weak performances in prior years and would give Nationwide a strong, established player with a well-known name.