Business World

Saturday 22 October 2016

Henderson and Janus merger will create $320bn giant

John Gittelsohn, Kathleen Chu and Sarah Jones

Published 04/10/2016 | 02:30

Richard Weil, Chief Executive Officer of Janus Capital Group
Richard Weil, Chief Executive Officer of Janus Capital Group

Henderson Group agreed to buy Janus Capital Group in a deal that will create a $320bn (€285bn) money manager as both companies seek to boost profit and assets. Henderson's shares surged the most in more than seven years.

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The combined firm, Janus Henderson Global Investors, will have a market value of at least $6bn, the Denver and London-based companies said in a statement yesterday. Japanese insurer Dai-ichi Life is Janus's biggest shareholder and will hold a 9pc stake in the combined company that it intends to increase to at least 15pc, according to the statement.

"The groups complement each other," said Mark Dampier, head of investment research at Hargreaves Lansdown, in a note to clients. "Scale can help keep costs down for fund groups, allowing them to offer more competitive fund pricing while still delivering good active performance."

Henderson's shares rose as much as 20.2pc, the most since January 2009. Janus investors will receive 4.719 new Henderson shares for each share they hold. Henderson investors will own 57pc of the new company, with 43pc going to Janus shareholders. Active managers that specialise in stock and bond picking have been losing market share to lower-fee indexers in recent years. Under chief executive officer Richard Weil, who came to Janus in 2010, the firm has diversified through acquisitions, new fund offerings and overseas expansion, especially in Asia. In 2014, Weil hired Bill Gross from rival Pimco to manage its Global Unconstrained Bond Fund, which now has $1.5bn. The deal is expected to close next year. The combined company will be UK tax resident with a primary listing on the New York Stock Exchange. (Bloomberg)

Irish Independent

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