Merger News: BlackRock Makes Their $13.5 Billion Move!
As you can probably tell from the title, BlackRock has agreed to purchase Barclays’ asset management unit, BGI, for $13.5 billion to become the world’s largest money manager through the largest merger in the fund-management industry. BlackRock will pay $6.6 billion and cash, and the remaining $6.9 billion in stock (approximately 37.8 million shares) to finance the acquisition. Of the $6.6 billion, $2.8 billion will stem from the sale of equity to institutional investors and another $2 billion will come from, surprise, surprise, loans from Barclays and other banks – now that’s having your cake and eating it too. The transaction, considering the stock portion of the deal, will give Barclays a 19.9% stake in BlackRock For more information on the merger, see the article below, as well as my previous post on the merger.
