BlackRock buys 40% in DSP ML

Written by Markets Bureau | Mumbai, Jan 25 | Updated: Jan 26 2008, 05:34am hrs
There is one more believer in the India story, no matter where the market is headed. BlackRock, a top US fund manager, has voted for Indias financial services market, partnering the country's oldest asset management company, DSP Merrill Lynch (DSP ML) Fund Managers.

The New York-based BlackRock will acquire MLs 40% stake in DSP ML Fund Managers. The fund it will be renamed DSP BlackRock Investment Managers.

Flanked by Laurence D Fink, chairman and CEO of BlackRock, Hemendra Kothari, chairman of DSP ML Fund Managers, told reporters that BlackRock will acquire the Merrill Lynch stake following MLs decision to realign its asset management business globally. DSP group will retain its 60% stake in the joint venture. After this, DSP Merrill Lynch Mutual Fund will be renamed DSP BlackRock Investment Mutual Fund, he said.

Both Kothari and Fink refused to reveal the deal size saying, On September 29, 2006, Merrill Lynch combined its investment management businessMerrill Lynch Investment Managerswith BlackRock in exchange for 49% economic stake in the merged enterprise. BlackRock then adjusted MLs 49% stake in the merged enterprise against 40% ML stake to form a new entity called DSP BlackRock Investment Managers.

BlackRock globally has asset under management of Rs 52 lakh crore, around ten times the size of the Indian mutual fund industry at Rs 5.4 lakh crore.