Credit Suisse agrees to sell ETF business to BlackRock
In a strategic move, Credit Suisse announces the sale of its ETF business
Zurich, January 10, 2013 Credit Suisse today announced that it has signed an agreement to sell its exchange traded funds (ETF) business to BlackRock, Inc. (BlackRock). This is an important strategic step in an industry that requires significant scale, and allows Credit Suisse to realize value in a business successfully built over many years.
The sale is part of Credit Suisse’s strategic divestment plans that were announced on July 18, 2012. It comprises Credit Suisse’s ETF business with assets under management of CHF 16.0 billion as of November 30, 2012. The transaction is subject to customary closing conditions, including regulatory approvals and is expected to complete by the end of the second quarter of 2013. The terms of the deal are not being disclosed.
Martin Keller, Head of Distribution for Core Investments, said: “In BlackRock we have found a buyer who is a leading ETF player with a successful track record and well established products.”
He continued: “Credit Suisse will remain a large investor of ETFs through our Private Banking & Wealth Management division and will partner closely with BlackRock to broaden the ETF product offering for our clients. We believe that BlackRock is well positioned to realize the long-term value of our ETF business.”
Joe Linhares, Head of iShares EMEA at BlackRock, commented: “Today’s agreement brings together the innovative culture of two premier ETF providers with a shared commitment to continually growing the ETF category. The transaction significantly extends BlackRock’s footprint in Switzerland, which is home to one of the deepest investor bases in Europe.”
BlackRock (NYSE: BLK) offers investment management, risk management and advisory services for institutional and retail clients worldwide and is a leading provider of exchange traded funds through its iShares franchise. As of September 30, 2012, BlackRock’s global AUM was USD 3.7 trillion.
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- Credit Suisse AG is one of the world's leading financial services providers and is part of the Credit Suisse group of companies (referred to here as 'Credit Suisse'). As an integrated bank, Credit Suisse offers clients its combined expertise in the areas of private banking, investment banking and asset management. Credit Suisse provides advisory services, comprehensive solutions and innovative products to companies, institutional clients and high-net-worth private clients globally, as well as to retail clients in Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide. The group employs approximately 48,400 people. The registered shares (CSGN) of Credit Suisse's parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.
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