Fund managers, Henderson Group and Janus Capital Group, are set to merge, to become a global fund manager named Janus Henderson Global Investors plc.
The announcement came after both of their boards of directors unanimously agreed to an-all stock merger of equals.
Janus’ strengths in US markets and Henderson’s strength in both UK and European markets would create a truly global asset manager, the new combined organisation said.
The company would be a leading global active asset manager with assets under management that exceeded US$320 billion ($416.3 billion), while its combined market capitalisation would total US$6 billion, the company said.
Henderson’s and Janus’ chief executives would lead the combined company together, while the combined group would apply for admission to trade on the New York Stock Exchange (NYSE) as its primary listing, and retain Henderson’s existing Australian Securities Exchange listing.
“[The merger offered] attractive growth potential, together with an annual run rate net cost synergies of at least US$110m, expected to deliver compelling value creation for shareholders,” the announcement said.
Janus’ largest shareholder, Dai-ichi Life had committed to supporting the merger and said it intended to extend its strategic partnership to the combined group.
The merger would be affected by a share exchange, with each share of Janus’ common stock exchanged for 4.7190 newly issued shares in Henderson.
Henderson and Janus’ shareholders were expected to own 57 per cent and 43 per cent respectively of the new company’s share on closing based on the current number of shares outstanding.
The merger was expected to be finalised by the second quarter of 2017, and was subject to shareholder and regulatory approvals.
