Jupiter shareholders back £370m takeover of Merian

Shareholders in fund manager Jupiter have voted to approve the takeover of rival Merian at the company’s AGM this week.

Jupiter said just over 95% of shareholders approved the deal at the AGM yesterday (21 May), held in London.

The acquisition is set to be completed on or just after 1 July.

Jupiter chief executive Andrew Formica said after the vote: “We are delighted by the support from our shareholders for the acquisition of Merian, which reflects the strong strategic and financial rationale for the transaction.  

“Whilst completion of the acquisition remains conditional on a small number of provisions, including the receipt of customary regulatory approvals, this is an important milestone. We remain on track to complete the acquisition on, or as soon as possible after, 1 July 2020 and have been working closely with colleagues at Merian on the integration, which is progressing smoothly despite the lockdown.”

Jupiter believes the integration with Merian will create a larger, more diversified asset manager and help cut costs. Both firms have been hit by outflows from flagship funds in recent times but remain significant players in the UK fund sector with Jupiter managing £65bn and Merian £22bn.

Merian was the result of a Ј550m management buy out from Old Mutual in 2018 which was structured by private equity firm TA Associates. The MBO was led by leading fund manager Richard Buxton who became chief executive and a major shareholder in Merian. Mr Buxton stood down as CEO a year ago but remained head of UK equities and manager of the Merian UK Alpha Fund as well as a major shareholder.

Following the deal TA Associates Management will once again become a “significant long-term shareholder” of Jupiter with an approximate 16% shareholding.

Jupiter says the acquisition will create a number of benefits including adding to Jupiter’s active management approach, diversifying its fund range as well as “cost efficiencies.” The firm says the deal will also add to its capabilities in Fixed Income and Global Emerging Markets.