BlackRock Confirms Discussions about Purchasing BGI

BlackRock, Inc., confirmed that it has been engaged in discussions with Barclays Bank about BlackRock's potential purchase of Barclays Global Investors (BGI), including the iShares business.

The company said in a news release that negotiations are ongoing and there is no certainty that any transaction will be agreed upon or, if agreed upon, completed.

In April, Barclays announced a deal to sell its iShares business to CVC Capital for $4.4 billion, but it reserved the right to keep entertaining suitors until June 18 (see “Vanguard Offers $5B for iShares).

In May, Barclays said it had received “unsolicited interest” in BGI, as well as iShares, since the CVC deal was announced. Bloomberg reported inquiries for a broader deal from BlackRock and Bank of New York Mellon (see “Barclays Reportedly Considering Broader BGI Deal).