As Barclays seeks to unload some of its businesses with the hopes of avoiding government ownership, two firms are vying to the the number one money manager in the world. It was reported over the weekend that Barclays will be selling its Global Investors unit, after months earlier CVC Capital Partners has won the bidding for the bank’s iShares business.
BGI, based in San Francisco, would vault BlackRock, the largest publicly traded money manager in the U.S., to $2.81 trillion in assets. BNY Mellon, the world’s biggest custody bank, would rise to $2.38 trillion, surpassing firms including Fidelity Investments and Vanguard Group Inc. The New York-based companies would gain more customers outside of the U.S. and put pressure on their main rivals — Pacific Investment Management Co. for BlackRock, and State Street Corp. for BNY Mellon — to catch up.
For its iShares business, the largest ETF with $262bn in assets, Barclays still has until the 18th of June of this year to find offers better than that presented by CVC for $4.4bn.