Blackrock agrees to acquire Barclays Global Investor

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An employee walks out of Blackrock's headquarters in midtown Manhattan, New York, the United States, June 12, 2009. BlackRock Inc.said Friday that it will acquire Barclays Global Investors (BGI) in a cash and stock deal worth 13.5 billion U.S. dollars, creating the world's largest money management firm with more than 2.7 trillion dollars worth of assets under management.

NEW YORK, June 12 -- BlackRock, Inc., one of the world's largest publicly traded investment management firms, has announced it will acquire Barclays Global Investors (BGI) for 13.5 billion U.S. dollars.

Under the terms of the transaction, BlackRock would acquire BGIin exchange for 37.8 million shares of common and common equivalents in BlackRock and 6.6 billion dollars of cash.

The shares will represent a 4.9 percent voting interest and an aggregate 19.9 percent economic interest in the combined firm, which will be renamed BlackRock Global Investors.

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"BARCLAYS GLOBAL INVESTORS" is seen on the screen of the Barclays' New York branch building in New York, the United States, June 12, 2009. (Xinhua/Chen Gang)
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The combination of BlackRock and BGI would bring together market leaders in active and index strategies to create the preeminent asset management firm operating under the name BlackRock Global Investors, the company said in a statement released Thursday night.

The transaction would create an independent and fully integrated asset management firm with combined assets under management of over 2.7 trillion dollars.

At the closing of this transaction, which is expected to occur in the fourth quarter, Barclays will hold a 19.9 percent economic interest in BlackRock. BlackRock will have more than 9,000 employees in 24 countries and have a meaningful presence in all major markets around the world after the deal.

"We are incredibly excited about the potential to significantly expand the scale and scope of our work with investors throughout the world," said Laurence D. Fink, BlackRock Chairman and CEO.

"The combination of active and passive investment products will be unsurpassed, and will enhance our ability to offer comprehensive solutions and tailored portfolios to institutional and retail clients," he added.