BlackRock Faces CMA Scrutiny in Preqin Acquisition
Deal News | Dec 03, 2024 | EIN
The UK Competition and Markets Authority (CMA) has initiated preliminary steps towards investigating BlackRock's anticipated acquisition of Preqin, a financial data group. The $2.55 billion cash deal represents BlackRock's first foray into the financial information sector. Preqin specializes in data on the private capital industry, including private equity and hedge fund performance, catering to banks, asset managers, and investment firms. The CMA is assessing whether the merger could negatively impact market competition, as outlined by the Enterprise Act 2002. While the formal investigation hasn't started, the CMA has invited comments from interested parties, setting a deadline of December 17, 2024, for submissions. This step is part of its initial information-gathering process, and the phase one investigation timeline is yet to be announced.
Sectors
- Financial Data Services
- Asset Management
Geography
- United Kingdom – The CMA's involvement and regulatory processes occur within the UK jurisdiction.
Industry
- Financial Data Services – Preqin specializes in providing data on the private capital industry, pertinent to the financial data services sector.
- Asset Management – BlackRock is the world's largest asset manager, indicative of operations within the asset management sector.
Financials
- 2.55 billion – The cash purchase price BlackRock has agreed to pay for acquiring Preqin.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| BlackRock | Acquirer | Company | The world's largest asset manager aiming to acquire Preqin. |
| Preqin | Target Company | Company | A financial data group that provides information on the private capital industry. |
| Competition and Markets Authority (CMA) | Regulator | Government | The UK regulator responsible for assessing competition impacts of mergers and acquisitions. |