BlackRock to Acquire $17.6 Billion ETF Unit From Credit Suisse (BLK)
The world’s largest asset manager, BlackRock, Inc. (BLK), announced that it has agreed to acquire an exchange-traded funds (ETFs) unit from Credit Suisse as a way to increase its presence in Switzerland and Europe.
The deal is expected to close by the end of the second quarter. The ETF unit of Credit Suisse that BlackRock is purchasing has 58 ETFs and about $17.6 billion worth of client assets under management.
BlackRock’s iShares unit currently has 38% market share in Europe; this acquisition will add Europe’s fifth-biggest exchange-traded product business into the fold to increase European market share. The move to increase exposure to the European markets is a strategy to grow as BlackRock loses market share in the United States to Vanguard.
“The transaction significantly extends BlackRock’s footprint in Switzerland, which is home to one of the deepest investor bases in Europe,” said Joe Linhares, head of Europe and Middle East at BlackRock’s iShare unit.
BlackRock shares were flat during premarket trading on Thursday. The stock is up +19.92% over the past year.
The Bottom Line
Shares of Blackrock (BLK) have a 2.79% dividend yield, based on last night’s closing stock price of $214.82. The stock has technical support in the $200-$202 price area. If the shares can firm up, we see overhead resistance around the $220 price level.
BlackRock, Inc. (BLK) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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