M&G is set to split from insurer Prudential and be floated as a separate company.
The move comes less than a year after Prudential’s investment business was merged with M&G, creating M&G Prudential, a £332 billion ($463 billion) asset management giant.
The demerger will effectively see the group’s business chopped in two, with M&G Prudential, a UK and European asset manager, and Prudential, which is predominantly an insurer focused on Asia, the US and Africa.
As a standalone entity, M&G Prudential will continue to be led by chief executive John Foley.
Prudential chair Paul Manduca said: ‘The decision to demerge M&G Prudential follows a rigorous review by the board which considered all options, including the status quo, and concluded that it is in the best interest of the group to operate as two separately-listed companies, able to focus on their distinct strategic priorities in their chosen geographies.
'Both are expected to meet the criteria for inclusion in the FTSE 100 index.’
Foley added: ‘The demerger will allow M&G Prudential to play a broader leadership role in the fast-changing savings and investments market within the UK and Europe.
M&G recently reamped up its efforts in the US offshore and Latin American wealth markets. In January 2017 it signed a agreement with Peru-based firm Credicorp Capital to market its funds in Chile, Peru and Colombia.
Additional information added by Michelle Abrego.