Summary
Today after bid acceptance Blackrock gets a $1.4 trillion portfolio of ETFs and other successful Barclays products in the UK and Emerging Markets. Barclays ETFs also known as iShares cover Emerging Markets, Infrastructure, Oil and currencies from China to India and Brazil with more focus on ensuring a liquid and consistent index to track for the fund. Many iShares work with MSCI and other indices like the China A-50. $2.8 trillion under the belt of Lawrence Fink means that Blackrock can now position itself as the market leader and grow its funds and its influence on the OTC markets(pink sheets) as well as the equity capital markets at large. The $6.6 billion in cash cover 0.6% value of the global assets and additionally a similar amount comes as Barclays' stake. Thus the valuation seems comfortable for Barclays and at the same time 50% stock payment makes it cheap for Blackrock. The other bid from CVC preferred to be conservative and none others invited.
Analysis
Blackrock able to compete effectively with this large size would successfully cross this test for the market. If Blackrock cannot leverage this deal as strength it would adversely impact the fragile ecosystem rebuilt from the ashes of 2008
