Must Be Merger Monday

Just when I thought M&A activity was winding down for the year, Janus Capital announced today they were merging with Henderson Group plc.  The new entity will be called Janus Henderson Global Investors with Headquarters in London.  The combined company will apply for a primary listing in New York, keeping Henderson’s Australian listing (HGG.AX) but delisting in London.  Terms of the deal will provide Janus shareholders with 4.719 shares of the new company for each share held and is expected to complete 2Q 2017.

So it appears the rumored consolidation in the money manager space has begun.  For those unfamiliar, Janus is where Bill Gross set up shop following his departure from Pimco.

I like the synergies – the only issue I have being a twice per year rather than quarterly dividend.  But I was looking to enter a UK stock (with sterling being weak) so it appears one is landing squarely into my portfolio.


2 thoughts on “Must Be Merger Monday

  1. I actually quite like Henderson, and would have used them as a way into the UK space, so I guess when we get a piece of them, we’ll be getting a lot of North America too.

    I’m looking forward to seeing what the new entity looks like.


    Liked by 1 person

  2. It’s amazing when an opportunity blasts through the front door. I had been looking at BAB.L, LRE.L, and LGEN.L but wasn’t impressed with current valuations. This one gives me a slight premium but more importantly a US$ play (strong now) versus the UK pound (weak now). I can now watch this game play out (until mid-2017) from the safety of my home currency.

    Glad you like them – but they saw a nice pop on the news as well.


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