Two of the world’s leading institutional investors are to merge to create an investment group with more than US$300bn in funds under management.
Henderson Group (LON:HGG) and American firm Janus Capital (NYSE:JNS) said it was a merger of equals that would combine Henderson’s strength in Europe and the UK with Janus’s US focus.
On completion, the enlarged company would have a market value of more than US$6bn, with costs savings from the merger estimated at US$100mln at least.
The new group will be listed in New York and be called Janus Henderson Global Investors plc, though Henderson shareholders will be in the majority with a 57% stake in the new company.
The chief executive role will be jointly held by Andrew Formica of Henderson and Dick Weil of Janus.
Weil said: “Janus brings a strong platform in the US and Japanese markets, which is complemented by Henderson’s strength in the UK and European markets.“
The two companies combined had revenue of more than US$2.2bn and underlying earning [EBITDA] of approximately US$700mln in 2015.
Dai-ichi, the largest shareholder in Janus has given its blessing to the deal and will be given an option to take a 5% stake in the enlarged company and may make a possible further investment of US$500mln.
Story by ProactiveInvestors