BlackRock buys Credit Suisse ETF business

ETF tradingBlackRock has added $17.6 billion (€13.5 billion) to its iShares exchange-traded fund (ETF) platform with the acquisition of Credit Suisse's ETF business announced today.

The transaction, which is expected to complete by the end of the second quarter, comprises 58 funds from Credit Suisse’s ETF range.

The terms of the deal are not disclosed.

iShares is the largest of the 180 ETF providers globally and upon completion the expanded iShares ETF range in Europe, Middle East and Africa will comprise 264 ETFs with $157.6 billion in assets under management.

BlackRock, the world’s largest asset manager, says the deal strengthens its position in Switzerland, where it already has 50 employees in Geneva and Zurich.

Credit Suisse has nine ETFs domiciled in Switzerland and funds domiciled in Ireland and Luxembourg.

Martin Keller, head of distribution for core investments at Credit Suisse, says: “Credit Suisse will remain a large investor of ETFs through our private banking and wealth management division and will partner closely with BlackRock to broaden the ETF product offering for our clients.”

New York-headquartered BlackRock had $3.673 trillion of assets under management at September 30, 2012.

Credit Suisse is BlackRock’s second acquisition in Switzerland in the last 12 months following the purchase of Swiss Re Private Equity Partners in 2012.

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