BGI-Blackrock - following deal with BGI (Barclays asset management), Blackrock will oversee about $3 trillion in assets. The board of Barclays recommended shareholders accept Blackrock's $13.5 billion cash and share offer for BGI. The new entity will take the name "Blackrock Global Investors".
Win for Blackrock, Win for Barclays
* PLUS POINTS FOR BLACKROCK
This gives Blackrock exposure to the ETF business, allowing investors to invest in areas which may otherwise be difficult to acquire, like precious metals or foreign stocks.
* PLUS POINTS FOR BARCLAYS
Provides much-needed capital to boost the balance sheet. (Barclays previously relied on Middle Eastern governments to effectively "bail it out" of credit crunch).
Negatives?
Blackrock rejects the initial offer from CVC Capital Partners to acquire its ETF business.
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