NEW YORK - BlackRock, Inc. (NYSE:BLK), the global investment management corporation, announced today that its acquisition of Global Infrastructure Partners (GIP) is expected to close on October 1, 2024, contingent on regulatory approvals and customary closing conditions. This strategic move will see BlackRock merge with a direct wholly-owned subsidiary, with the combined entity to continue trading under the BLK ticker on the New York Stock Exchange (NYSE).
The merger, aligned with Section 251(g) of the Delaware General Corporation Law, involves BlackRock becoming a direct wholly-owned subsidiary of the newly formed entity, New BlackRock. Shareholders of BlackRock will have their shares automatically converted on a one-for-one basis into shares of New BlackRock, which will become the publicly listed company retaining the BlackRock, Inc. name.
In anticipation of this merger, BlackRock has also communicated its intention to voluntarily delist its Euro-denominated 1.250% Notes due 2025 from the NYSE and deregister them under the Securities Exchange Act of 1934. The delisting process will begin with a Notification of Removal from Listing filed with the Securities and Exchange Commission (SEC) around September 23, 2024, becoming effective ten days post-filing. Subsequently, these notes will cease trading on the NYSE and are slated for admission to the Official List of The International Stock Exchange (TISE) following the GIP Transaction's completion.
This transaction is a part of BlackRock's broader business initiatives and reflects its commitment to expanding its offerings and addressing client preferences in the financial services sector. The company has a history of providing technology solutions to support investment and financial well-being for its clients globally.
The announcement includes forward-looking statements that involve certain risks and uncertainties, which could cause actual future results to differ from those projected. BlackRock has outlined these risks in its SEC reports and other public disclosures, emphasizing that forecasts are not guaranteed and may change over time.
This article is based on a press release statement and aims to provide factual information without endorsing any claims made by BlackRock, Inc.
In other recent news, BlackRock has secured approval from the U.S. Federal Energy Regulatory Commission for its $12.5 billion acquisition of Global Infrastructure Partners. The deal is expected to significantly expand BlackRock's asset management portfolio across various sectors, including energy, transportation, digital infrastructure, and water and waste management. Barclays (LON:BARC) has given an Overweight rating to BlackRock, citing its potential for continued growth, particularly with the anticipated integrations of Global Infrastructure Partners and Preqin later this year.
In further developments, BlackRock and Vanguard have acquired substantial shares in Trump Media & Technology Group, as disclosed in recent regulatory filings. Meanwhile, BlackRock is planning to cut about 3% of its workforce, in line with the broader trend of workforce reductions across various sectors in the United States and Canada due to uncertain economic conditions. The reductions are part of restructuring efforts, although BlackRock anticipates a larger headcount by the end of 2024. These developments underscore the dynamic and evolving landscape of the asset management industry.
InvestingPro Insights
As BlackRock, Inc. (NYSE:BLK) prepares to merge with Global Infrastructure Partners, the financial community is keenly observing the company's performance metrics and strategic financial decisions. BlackRock has been a consistent performer in terms of shareholder returns, as evidenced by its track record of raising dividends for 14 consecutive years. This commitment to shareholders is further demonstrated by the company's maintenance of dividend payments for an impressive 22 years in a row.
InvestingPro data shows BlackRock with a robust market capitalization of $131.57 billion, reflecting the firm's significant presence in the investment management sector. The company's P/E ratio stands at 21.81, which is considered high in relation to its near-term earnings growth. However, BlackRock's liquid assets surpass its short-term obligations, indicating a strong liquidity position that could reassure investors of its ability to meet immediate financial needs.
BlackRock's performance has also been strong over recent months, with a 15.67% total return over the last three months. This performance is part of a longer trend, with the company also showing a strong return over the last five years. With analysts predicting profitability for the current year and the company having been profitable over the last twelve months, BlackRock's financial health remains robust as it moves forward with its strategic initiatives.
For those interested in further insights, InvestingPro offers additional tips on BlackRock, providing deeper analysis and comprehensive data to help investors make informed decisions. Visit https://www.investing.com/pro/BLK to explore a total of 9 InvestingPro Tips, including the company's trading near its 52-week high and its strong return over longer periods.
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