BlackRock has entered into a definitive agreement to acquire the exchange-traded funds (ETF) business of Credit Suisse, further strengthening its position in Switzerland and wider Europe.
BlackRock has entered into a definitive agreement to acquire the ETF business of Credit Suisse.
The transaction, which is part of Credit Suisse’s strategic divestment plans that were announced in July last year, comprises assets under management of $17.6 billion across 58 funds on five exchanges.
Martin Keller, Head of Distribution for Core Investments at Credit Suisse, said: “In BlackRock we have found a buyer who is a leader in the ETF industry with a successful track record and well established products.”
He added: “Credit Suisse will remain a large investor of ETFs through our Private Banking and Wealth Management division and will partner closely with BlackRock to broaden the ETF product offering for our clients. We believe that BlackRock is well positioned to realise the long-term value of our ETF business.”
The business appears complementary to BlackRock’s ETF platform, iShares, with the potential to merge a number of overlapping funds. The combined platform will enable clients to access the largest European ETF offering across equities, fixed income and gold. Upon completion, the expanded iShares EMEA ETF range will comprise 264 ETFs with $157.6 billion in assets under management.
Laurence D. Fink, Chairman and CEO of BlackRock, said: “This transaction keeps with BlackRock’s growth strategy in the region and provides the necessary scale and presence in the market to further enhance our product suite and deliver client solutions in Switzerland and all of Europe.”
Joe Linhares, Head of iShares EMEA, added: “Our long-term strategy is based on tapping growth markets in a disciplined way and deepening our presence with investors, and this acquisition will create an exceptional ETF platform with which to serve local investors and deliver value to shareholders.”
The transaction is subject to customary closing conditions, including regulatory approvals and is expected to complete by the end of the second quarter of 2013. The terms of the deal have not been disclosed.
The purchase of Credit Suisse’s ETF business is the second acquisition BlackRock has made in the ETF space in recent months. In the first quarter of last year it agreed to buy Claymore Canada, manager of the Claymore family of ETFs, from its parent company, Guggenheim Partners. That transaction included 34 ETFs (and two closed-end funds) with over C$6.9 billion in assets under management.