Merrill Lynch Investment Managers is to become one of the largest foreign fund managers in the Dutch market after it signed a seven-year deal to manage €13.5bn ($16bn) in assets for the pension fund of Philips, the Dutch electronics giant.

Merrill Lynch will take over the internal pension investment for Philips and that of Philips Investment Management, formerly known as Schootse Poort, its third-party fund management business, along with 50 investment staff.