BlackRock to acquire Merrill Lynch stake in DSP-ML
The largest quoted asset management company in the world will acquire the 40 per cent stake held by Merrill Lynch. MC Vaijayanthi reports.business Updated: Jan 25, 2008 22:04 IST
DSP Merrill Lynch mutual fund would soon be DSP BlackRock Mutual Fund. BlackRock Inc, the largest quoted asset management company in the world will acquire the 40 per cent stake held by Merrill Lynch in DSP Merrill Lynch Fund Managers.
DSP Group owned by Hemendra Kothari are the majority owners of the DSP Merrill Lynch Fund Managers with 60 per cent stake. This stake sale between Merrill Lynch and BlackRock is in line with the realignment of Merrill Lynch's asset management business globally. In September 2006, Merrrill Lynch's investment management business was merged with BlackRock.
Announcing the news to media on Friday, Hemendra Kothari, chairman, DSP Merrill Lynch said the new partnership would bring in some of BlackRock's products to Indian market like the World Gold Fund, launched by DSP Merrill Lynch Mutual Fund last year.
Laurence D.Fink, chairman and CEO of BlackRock, said "we feel Indian economy is going to be important and economies are all correlated and getting larger." Speaking about the current market conditions Fink said they have been telling clients to take risk and invest now. "We need some more help from the Fed. Another 50 basis points rate cut," he said.
DSP Merrill Lynch mutual fund currently manages Rs34,083 crore of assets spread across various fixed income, equity and hybrid schemes. BlackRock is one of the world's largest publicly traded investment management firms. As on December 31, 2007 BlackRock's AUM was $1.357 trillion (Rs 52,00,000 crore).