Janus Capital of the U.S. agreed to a $6 billion merger with Britain's Henderson Global Investors. As Fred Katayama reports, the deal may spark merger speculation.
A $6 billion trans-Continental marriage between two asset management firms: Janus Capital of the U.S. and Henderson Global Investors of Britain. Their merger aims to cut costs, diversify their product line up, and expand their global reach. Janus, which employs star bond fund manager Bill Gross, is strong in the U.S. and Japan; Henderson is big in Europe. The deal comes as the global fund industry seeks to cut costs because investors are dumping actively managed mutual funds with high fees for cheaper exchange-traded funds and passively managed mutual funds that simply track the market indexes. Cantor Fitzgerald analyst Keith Baird said, the Janus-Henderson deal "may kick off a round of merger speculation involving other asset managers such as Jupiter." Shares of Janus and Henderson rocketed higher. Jupiter jumping up also.