View more on these topics

BlackRock in £8bn BGI deal

BlackRock is buying Barclays Global Investors for £8.2bn.

The deal is made up of £4bn in cash and a 19.9 per cent stake in the new business. It includes the purchase of Barclays ETF business iShares and will see the combined business increase assets under management to £1.64 trillion.

In addition to the cash, Barclays will receive 37.784 million shares in the new firm, worth £4.2bn. The new company will be called BlackRock Global Investors and will employ 9,000 people in 24 countries.

Barclays agreed to sell iShares, which is part of BGI, to CVC Partners for £3bn in April but was allowed to seek better offers until June 18.

With the BlackRock offer now agreed by Barclays management, CVC has five days to respond with a better offer or the Barclays board will put the BlackRock offer to shareholders.

If the BlackRock deal goes ahead, BGI chief executive Blake Grossman will become vice-chairman of the new business. Barclays group chief executive John Varley and chief group president and chief executive of investment management Bob Diamond will join the BlackRock board. The deal would see BlackRock Global Investors overtake State Street Corporation as the world’s largest asset manager.

Blackrock chairman and chief executive Laurence Fink says: “The combination of active and passive investment products will be unsurpassed.”

Recommended

10

Communication breakdown

Advisers and clients were caught off guard last Monday with the impromptu announcement from the FSA that it had successfully applied for Keydata to be placed in administration on the grounds of insolvency.

MBE for Le Beau

Le Beau Visage managing director Peter Le Beau has been awarded an MBE in the Queen’s birthday honours list for service to charity and the insurance industry.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com