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BlackRock/BGI deal could reshape industry in Japan

The perils in the acquisition are considerable in Japan, where the BGI franchise has more to lose than to gain.
In Asia Pacific, nowhere are the stakes in BlackRock's $13.5 billion acquisition of Barclays Global Investors bigger than in Japan. BlackRock will be buying a franchise that is the biggest manager of corporate pension money, as well as a significant manager of public fund assets. BGI's business model, however, is generic and already replicated by domestic trust banks, which can be expected to pounce on BGI's clients. But if it succeeds in creating genuine synergies, the deal could ha…
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