LSE set to buy Russell for $2.7bn

June 27, 2014 - 12:00:00 am

LONDON: London Stock Exchange (LSE) Group has agreed to buy US asset manager Russell for $2.7bn in order to diversify and grow its business in the United States, it said yesterday.

The deal, worth the equivalent of €1.98bn, also involves LSEG buying Russell’s index business from parent NorthWestern Mutual. The British group said it would raise $1.6bn from the sale of new shares to help fund the deal. “With this acquisition we are strongly positioned for the changing dynamics in the global indices market,” LSEG Chief Executive Xavier Rolet said in a company statement.

The deal “sits squarely with our diversification strategy ... and provides another key driver of growth by growing our presence in the US, the largest global financial services market”, he added. Russell chief executive Len Brennan said in the statement that the tie-up “creates a truly global index leader, with a highly complementary fit of products and distribution capabilities”.

LSEG is the operator of the London stock exchange and Italy’s Borsa Italiana.

“The directors believe the acquisition is a rare opportunity to acquire a high quality US business with a leading global brand providing index and investment management services,” LSE 

it said. Agencies