UPDATE 4-BlackRock to buy Credit Suisse ETF business

Thu Jan 10, 2013 4:17pm EST
 
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* Credit Suisse ETF arm manages 16 bln Swiss francs

* Sources put price tag at $200-300 million

* Deal to close by end of Q2

* BlackRock is largest ETF seller in Europe

ZURICH, Jan 10 (Reuters) - BlackRock is to buy Credit Suisse's exchange-traded fund (ETF) business, which will give the U.S. asset manager greater scale in Europe.

The price tag on the deal, announced on Thursday, was not disclosed, but two sources familiar with the matter put it at between $200 million and $300 million.

For Credit Suisse, the disposal marks another step to bolster capital in line with tough new requirements on banks after the financial crisis.

BlackRock, the world's biggest investment manager by assets, will increase its scale and distribution with this deal.

Credit Suisse is the fourth largest ETF provider in Europe, with 58 ETFs and a 5.3 percent market share as of Dec. 31, according to ETF Global Insight, a London-based ETF research firm.   Continued...