Blackrock has agreed to buy Barclays Global Investors for USD13.5 billion, creating one of the world’s largest asset managers.
The deal, that has until 18 June to be bettered by another party, includes Barclays ETF platform iShares.
This means Barclays will have to pay a break fee of USD175 million to CVC Capital Partners, who originally agreed to buy iShares for USD4.4 billion.
At the closing of the deal, BlackRock will have more than 9,000 employees in 24 countries. Perhaps the most important geographical addition will be the BGI San Francisco office, increasing Blackrocks reach in the US.