BMO to purchase F&C

BMO Financial Group has reached an agreement to buy F&C Asset Management for £708 million (C$1.3 billion).

The deal will double BMO Global Asset Management’s assets under management to approximately $300.3 billion.

“The acquisition demonstrates BMO’s deep commitment to the asset management business,” says Bill Downe, CEO of BMO Financial Group.

“With an established pedigree in fixed income investment and broad equity and property capabilities across its European platform, F&C advances BMO’s capabilities by adding scope and scale to our well-established portfolio of wealth management businesses,” he adds.

On Monday, F&C said BMO had made a preliminary offer for the company.

F&C manages portfolios across multiple asset classes on behalf of a broad range of institutional and retail investors, including insurance companies, pension plans, sovereign wealth funds, private wealth managers, fund of funds, family offices and financial advisors.

Subject to F&C shareholder approval and the satisfaction of all regulatory and other conditions, the acquisition will close after May 1, 2014.

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