London Stock Exchange says to buy Russell for $2.7 bn

26th June 2014, Comments 0 comments

London Stock Exchange Group has agreed to buy US asset manager Russell for $2.7 billion in order to diversify and grow its business in the United States, it said on Thursday.

The deal, worth the equivalent of 1.98 billion euros, also involves LSEG buying Russell's index business from parent NorthWestern Mutual.

The British group said it would raise $1.6 billion 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.

© 2014 AFP

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