BlackRock Inc. announced Monday that it has completed its absorption of Merrill Lynch Investment Managers. The two first announced the merger back in February.
During the past several months, BlackRock has worked to integrate control of MLIM, previously Merrill Lynch & Co.’s asset management business, which it acquired in the deal. The acquisition gives BlackRock more than $1 trillion in assets under management.
In return, Merrill gained a 49.8% share in the publicly traded investment management firm, along with a 45% voting interest. PNC Financial Services Group Inc. retains a 34% stake in the company, and BlackRock shareholders and employees own the balance.
Of the $1.046 trillion under management at the combined company, 44% were fixed-income holdings, based on the companies’ combined holdings on June 30, 2006. The remainder of their holdings included 33% in equity and balanced investment, 19% in cash management, and 4% in alternative investments, according to merger documents filed Sept. 13 with the Securities and Exchange Commission.
These documents also showed that about one-third of BlackRock’s assets were based outside the U.S.
“Together, we have global scale and resources with a unified platform for information sharing that will enable us to help our institutional and retail clients fully realize opportunities in today’s marketplace,” said Laurence Fink, BlackRock’s chairman and chief executive.
The combined company will keep its BlackRock name, and began a global re-branding campaign this week. The effort will include advertisements in the New York Times and the Wall Street Journal, along with the launch of a new Web site.
BlackRock also announced Monday that Stan O’Neal, chairman and chief executive of Merrill Lynch, and Gregory Fleming, president of Merrill’s global markets and investment banking group, both joined BlackRock’s board. Three other new directors also joined the board, which now has 17 members — nine of them independent.
The firm’s third-quarter financial statement, scheduled for release on Oct. 30, will give the first official glimpse into post-merger combined financial information. The company has stated in merger documents that it plans to take one-time merger-related costs of about $200 million.
