Bloomberg News

BlackRock to Buy Claymore Canada From Guggenheim in ETF Push

January 12, 2012

(Updates with details starting in third paragraph.)

Jan. 11 (Bloomberg) -- BlackRock Inc., the world’s largest asset manager, agreed to buy Claymore Canada from Guggenheim Partners LLC to expand its offering of exchange-traded funds in that country.

The transaction, the terms of which weren’t disclosed, will add 34 ETFs and two closed-end funds with C$7 billion ($6.9 billion) under management, according to a statement today. The deal is scheduled to close by the end of the first quarter and will be “neutral to modestly accretive” to full-year earnings, New York-based BlackRock said.

BlackRock, which in December 2009 acquired Barclays Global Investors to become the biggest provider of ETFs in the world, already manages C$29 billion in Canada through its iShares unit, the largest seller of ETFs in Canada. Claymore is the second- biggest, according to data compiled by Bloomberg.

Guggenheim acquired the ETF business through its purchase of Claymore Group LLC, announced in July 2009 and completed later that year. In 2010, when it rebranded Claymore’s U.S.- registered funds and business units under the Guggenheim name, Toronto-based Claymore Investments kept its brand.

BlackRock manages $3.3 trillion in assets worldwide through mutual funds, institutional accounts and ETFs.

--Editors: Christian Baumgaertel, Steven Crabill

To contact the reporters on this story: Sree Vidya Bhaktavatsalam in Boston at sbhaktavatsa@bloomberg.net; Christopher Condon in Boston at ccondon4@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net


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