In a move that is expected to add another $18 billion in assets under management to the $139 billion already managed by its iShares operations in Europe, BlackRock has acquired Credit Suisse’s exchange-traded funds unit for an undisclosed amount.
Already the largest ETF provider in Europe with around 42% of the $330 billion market, BlackRock is picking up 58 ETFs from Credit Suisse (including $9 billion in 9 funds), which when combined with its current slate of 200 European iShares ETFs would leave it with around 48% total market share.
While the terms for the deal were not disclosed by BlackRock, some are speculating that the price tag was between $200 million and $300 million, which would seem about right considering the nature of the assets and Credit Suisse’s need to unload assets as part of its ongoing reorganization and recapitalization. Given its relatively small size (compared with the more than $3.6 trillion in AUM that BlackRock already manages), we do not expect the deal to have too much of an impact on the near-term estimates for the firm.
About Credit Suisse
Credit Suisse is a global financial services company and operates the second-largest private bank in Switzerland. In 2011, 30% of the bank’s risk-weighted assets were allocated to private banking, 60% to investment banking, 5% to asset management, and 5% to corporate center. In 2005, its “one bank” initiative reorganized the three core divisions under one brand to generate synergies and cost savings.
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