US asset manager Invesco has bought asset manager OppenheimerFunds from MassMutual in a deal worth around €5bn. The two companies announced this, confirming longer lasting rumors about such a deal.
As a result of this transaction, Invesco’s total assets under management (AUM) to grow more than $1.2trn, making it the 13th largest global investment manager and sixth-largest US retail investment manager, further enhancing the company’s ability to meet client needs through its comprehensive range of high-conviction active, passive and alternative capabilities.
In exchange, MassMutual and OppenheimerFunds employees will receive 81.9m shares of common Invesco stock and $4 billion in preferred shares, while MassMutual would gain a 15.5% stake in Invesco, becoming the bank’s largest single shareholder. In addition, the retired CEO of OppenheimerFunds will be nominated to serve on Invesco’s board of directors.
The transaction is expected to be complete in Q2 2019, pending regulatory and third-party approvals.