Two Sydney-based fund managers have agreed to combine in a $2.5 billion deal that'll create what the companies are calling Australia's pre-eminent global asset manager.
After months of talks, 134-year-old Perpetual Limited is acquiring competitor Pendal Group, a 45-year-old wealth manager formerly known as BT.
"Our board and management see this as a defining acquisition that brings together two of Australia's oldest and most respected active asset management brands to create a diversified global asset management business of substantial scale," said Perpetual chairman Tony D'Aloisio.
The combined entity will have a $201 billion in assets under management and $1.4 billion in revenue.
It'll have seven boutique brands, including dedicated ESG (ethical, social and governance) asset manager Trillium and Barrow Hanley.
Perpetual chief executive Rob Adams will lead the combined group.
Pendal shareholders will receive one Perpetual share for every 7.5 Pendal shares they own, along with $1.976 cash per Pendal share.
"The Scheme Consideration recognises the value Pendal has created as home to some of the most respected investment talent in the world, with sustainable and impact investing capability and an impressive global distribution footprint," said Pendal chairwoman Deborah Page AM.
Pendal shareholders will be able to vote on the scheme at a meeting likely in December or early in early 2023.
At 3pm AEST, Pendal shares were up 8.9 per cent to $5.315, while Perpetual shares were down 8.3 per cent to $27.76.
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