UK - ISIS Asset Management and the Dutch Eureko-owned F&C have merged to create the fourth largest asset manager in the UK and a top ten manager of European pension fund assets with £120bn of funds under management.
ISIS is currently 67% owned by Friends Provident and following the merger, Friends Provident will have a 51% holding in the enlarged group. Eureko, including F&C management and employees, will hold 23% and there will be a free float of 26%.
In a joint press statement, ISIS and F&C said that the expected annual pre-tax synergies of £33m are achievable in full by early 2006.
The enlarged group will adopt F&C’s corporate name and brand.
ISIS chief executive Howard Carter will be chief executive of the new company and Robert Jenkins, F&C chief executive, will be non-executive chairman.
Carter said: “This is a unique opportunity for us to achieve our stated objective of becoming a top five UK asset manager, extend our franchise into Continental Europe, create a more diversified business and provide a platform for meeting our clients’ needs in terms of both product and investment management capability.
“Accordingly, I am confident that the enlarged group will be well positioned to grow revenues and benefit the interests of all our stakeholders.”
Jenkins added: “This transaction achieves our aim of a listing for F&C, creates value, deepens our investment talent and does so in a way which will be non-disruptive to our clients. We are very enthusiastic about the merger.”
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