BlackRock’s Acquisition of Asset Management Business of Citibanamex


Skadden is advising BlackRock on the deal

BlackRock (NYSE:BLK) and Citibanamex, a subsidiary of Citigroup Inc. (NYSE:C), today announced a definitive agreement for BlackRock to acquire the asset management business of Citibanamex, subject to regulatory approvals and customary closing conditions.

BlackRock and Citibanamex will also enter into a distribution agreement upon the closing of the transaction to offer BlackRock asset management products to Citibanamex clients in Mexico. Through its network of 1,500 branches in Mexico, Citibanamex provides wealth management products and services to more than 20 million clients.

The transaction involves approximately US$31 billion in assets under management of Citibanamex, across local fixed income, equity and multi-asset products, primarily for retail clients. The transaction is part of Citi’s emphasis on expanding access to best-in-class investments products, rather than on manufacturing proprietary asset management products. BlackRock’s business in Mexico currently focuses mostly on institutional clients, offering international investment and risk management products and services across asset classes, strategies and geographies.

The agreement builds upon the long-standing relationship between BlackRock and Citi and brings together two leading firms to offer a wider range of products, enhanced technology and investment capabilities for clients.

The Skadden team includes: Financial Institutions M&A partner David Hepp (Picture), counsel Justin Askew and associates Matthew Collin and Erik Sarkisyan; Tax partner Victor Hollender and associates Joseph Soltis and Drew Hermiller; Intellectual Property and Technology partner Jose Esteves and associate Jenna Skoller Cantor; and Executive Compensation and Benefits partner Regina Olshan and associates Shalom Huber and Taylor Ball.

Involved fees earner: David Hepp – Skadden Arps Slate Meager & Flom; Justin Askew – Skadden Arps Slate Meager & Flom; Matthew Collin – Skadden Arps Slate Meager & Flom; Erik Sarkisyan – Skadden Arps Slate Meager & Flom; Victor Hollender – Skadden Arps Slate Meager & Flom; Joseph Soltis – Skadden Arps Slate Meager & Flom; Drew Hermiller – Skadden Arps Slate Meager & Flom; Jose Esteves – Skadden Arps Slate Meager & Flom; Jenna Skoller Cantor – Skadden Arps Slate Meager & Flom; Regina Olshan – Skadden Arps Slate Meager & Flom; Shalom Huber – Skadden Arps Slate Meager & Flom; Taylor Ball – Skadden Arps Slate Meager & Flom;

Law Firms: Skadden Arps Slate Meager & Flom;

Clients: BlackRock Investments;

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Author: Ambrogio Visconti