Henderson Group and Janus Capital plan merger

Investment firm Henderson Group (LSE: HGG.L - news) is planning a merger with US firm Janus Capital (NYSE: JNS - news) that will create a combined portfolio of assets under management worth £247bn.

The two firms will be renamed Janus Henderson Global Investors and hold a combined market capitalisation of £4.6bn.

Describing a "merger of equals", the combination of the two complementary businesses is expected to create a leading global active asset manager.

"This is a transformational combination for both organisations," said Janus CEO Dick Weil.

"Janus (Shenzhen: 300083.SZ - news) brings a strong platform in the US and Japanese markets, which is complemented by Henderson's strength in the UK and European markets."

The combined group, which will apply to trade on the New York Stock Exchange (NYSE) as its primary listing, is expected to create revenues of $2.2bn (£1.7bn) and underlying earnings of $700m (£539m).

Henderson and Janus shareholders are expected to own approximately 57% and 43% respectively.

The merger, which is currently expected to close in the second quarter of 2017, subject to shareholder and regulatory approval, will create cost savings of at least £84.7m a year and employ 2,300 people globally.