BlackRock To Acquire Barclays Global Investors
June 15, 2009
BlackRock said last week that it entered a purchase agreement to acquire Barclays Global Investors, including exchange-traded funds (ETF) platform iShares from parent company Barclays Plc.. The combination of BlackRock and BGI would create an asset management firm operating under the name BlackRock Global Investors with combined assets under management of over $2.7 trillion, BlackRock said.
"As one, BlackRock and BGI will have a world-class product offering across the risk spectrum to bring an even greater solutions-centered approach to retail and institutional clients," BlackRock noted in a prepared statement. "BGI's record of product innovation, risk analytics and leadership in quantitative investing, indexing, and retirement solutions will complement BlackRock's expertise in active fund management, tailored solutions, innovative culture and risk management via BlackRock Solutions."
The firm's products will include equities, fixed income, cash management and alternatives, and will offer clients access to global markets through separate accounts, common trust funds, mutual funds, ETFs, hedge funds, and closed-end funds.
Barclays had previously entered into an agreement to sell BGI's iShares business to another party under a "go shop" arrangement. Unless Barclays received an offer from that party within five business days that matches BlackRock's offer, the board of directors of Barclays said it would execute the purchase agreement with BlackRock and recommend it to Barclays' shareholders for approval.
