Asset managers Janus Capital and UK-based Henderson Group have announced their intention to merge, creating a $300 billion entity.
The new group, Janus Henderson Global Investors, is expected to be created in the second quarter of 2017, the two companies said in a market notice. The merger will increase the groups’ distribution capabilities, particularly in the Middle East, Latin America, and Asia Pacific regions.
Janus’ biggest shareholder, Japanese life insurance giant Dai-ichi, intends to support the merger, the statement added. It also intends to buy into the combined asset management group post-merger to hold 15% of shares.
Janus CEO Dick Weil said the move was “transformational,” adding that “the complementary nature of the two firms will facilitate a smooth integration.”
“Henderson and Janus are well-aligned in terms of strategy, business mix, and most importantly a culture of serving our clients by focusing on independent, active asset management,” added Henderson CEO Andrew Formica.
Formica and Weil are to be co-CEOs of the new company. Enrique Chang, currently head of investments at Janus, is to be Janus Henderson Global Investors’ global CIO. Chang was promoted to his current role in April, having previously led its equities and asset allocation groups.
“Synergies” as a result of the merger are projected to save $110 million annually following completion of the deal, the two companies said.
Janus hired PIMCO’s Bill Gross in September 2014 following the veteran bond manager’s surprise resignation from the firm he co-founded in 1971.
The Janus-Henderson tie-up is one of the biggest financial mergers or acquisitions of the past 12 months. Willis Group and Towers Watson completed their merger earlier this year, while MassMutual merged away its boutique asset management brands under the Barings Asset Management banner. The London Stock Exchange and Deutsche Börse agreed to merge in March, creating a $30 billion financial giant.
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