Swiss lender Credit Suisse (CS) has inked an agreement to dispose of its exchange traded funds (ETF) business to New York-based investment firm BlackRock, for an undisclosed sum.
As part of its strategic divestment plans announced in July 2012, the sale will enable the bank to realize value in a business that was successfully built over several years.
Credit Suisse’s ETF business has assets under management of CHF16bn ($17.47bn), as of 30 November 2012.
Commenting on the acquisition, BlackRock iShares EMEA head Joe Linhares said, "The transaction significantly extends BlackRock’s footprint in Switzerland, which is home to one of the deepest investor bases in Europe."
CS distribution for core investments head Martin Keller added, "Credit Suisse will remain a large investor of ETFs through our Private Banking & Wealth Management division and will partner closely with BlackRock to broaden the ETF product offering for our clients."
Subject to receipt of regulatory approvals and satisfying customary closing conditions, the transaction is likely to complete by the end of second quarter 2013.
As of 30 September 2012, BlackRock had $3.7 trillion assets under management (AUM) globally and provides investment management, risk management and advisory services for institutional and retail clients.
Employing approximately 48,400 people, Credit Suisse operates in over 50 countries across the globe and is headquartered in Zurich.