BlackRock Scoops Up BGI

Sale of Barclays asset management business to BlackRock puts pressure on State Street, Vanguard ETFs

June 12, 2009

Barclays on Friday announced the sale of its asset management business, Barclays Global Investors (BGI), to BlackRock for $13.5 billion, a transaction that creates a money management giant. The sale, a cash and stock deal, gives Barclays a nearly 20% interest in the newly combined group, which will be renamed BlackRock Global Investors. State Street Corp. and Vanguard Group, meanwhile, face a new and powerful competitor, say market observers. Barclays has by far the largest ETF business,…

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