PNC Bank Corp. said it has completed its previously announced acquisition of New York money manager BlackRock Financial Management LP for $240 million of cash and notes.
PNC said the acquisition will be nondilutive and will boost its trust and mutual fund revenues by a fifth. These revenues totalled $292 million last year.
BlackRock is a fixed-income specialist managing $24.3 billion. With the acquisition, PNC has investment discretion over more than $80 billion of retail and institutional assets, ranking as the sixth- largest money manager among banks, and the 12th-largest fixed-income manager in the country.
BlackRock will become investment manager for PNC's fixed-income mutual funds and common trust funds, and will also set PNC's fixed-income investment strategy.
The co-founders of BlackRock, chairman Laurence D. Fink and president Ralph L. Schlosstein, will continue to manage BlackRock and become directors of PNC's money management unit. Additionally, Mr. Fink will be a member of PNC's asset-liability committee.