Bank of Montreal’s latest expansion of its European asset management business took a step ahead Wednesday, as the firm announced the completion of its acquisition of UK-based F&C Asset Management plc.
The bank says it has completed the acquisition of F&C through its European subsidiary, BMO Global Asset Management (Europe) Ltd., bolstering its position in the asset management businesses of the UK and the rest of Europe. F&C’s CEO Richard Wilson and his management team will continue to lead the firm, and they will report to Barry McInerney, co-CEO, BMO Global Asset Management (GAM).
Earlier this year, BMO announced the acquisition of F&C for 120 pence per share in cash, valuing the firm at approximately £708 million ($1.3 billion). While anticipated cost savings as a result of the deal are modest, the bank expects the deal to help diversify its earnings. F&C had assets under management (AUM) of approximately £82 billion (US$136 billion), as of December 31, 2013.
“F&C and BMO share a deeply held conviction for working in the best interests of our clients,” said Bill Downe, CEO of BMO Financial Group. “Adding a European base builds scope and scale to our well-established portfolio of wealth management businesses and rounds out what is a broad global offering.”
With this latest acquisition, BMO GAM now has 24 offices in 14 countries, and approximately half of its AUM is managed for clients outside of North America.
“In order to serve the needs of our clients, it is important to have a truly global investment platform,” said McInerney. “Investors, wherever they are based, are increasingly demanding global products, strategies, and solutions. With this acquisition, BMO Global Asset Management is better able to leverage ideas cross-border and bring more comprehensive solutions to our clients around the world.”