By Jessica Toonkel
NEW YORK Dec 18 State Street Global Advisors
has dropped out of the bidding for Credit Suisse's
$17.34 billion European exchange-traded fund business, according
to two sources familiar with the situation.
As first reported by Reuters, BlackRock Inc and
State Street Global Advisors, the money management arm of State
Street Corp, were among the first round of bidders for
Credit Suisse's European ETF business in early October
The investment banking arm of Credit Suisse is representing
the parent company in the deal, sources said.
BlackRock is still looking at the business. It could not be
determined if other bidders are competing with BlackRock,
according to the sources, who declined to be named because the
talks are confidential.
Spokeswomen for Credit Suisse, State Street and BlackRock
declined to comment.
Credit Suisse's decision to sell its ETF business comes as
the company is closing or reducing other parts of its business
to raise capital to meet new regulatory requirements.
In November, Credit Suisse said it was integrating its
private banking and asset management divisions into a new wealth
With 58 ETFs, Credit Suisse is the fourth largest provider
in Europe, with 5.5 percent market share as of Nov. 30,
according to ETFGI, a London-based ETF research firm.
BlackRock is the largest ETF provider in Europe, with more
than 41 percent of the $318 billion European ETF market. Its 195
European iShares ETFs had $132 billion in assets.
State Street's 44 SPDR ETFs in Europe had $3.7 billion in
assets - 1.2 percent of the European market.
For BlackRock, the addition of Credit Suisse's ETF business
would be the second international ETF business the firm has made
In March, BlackRock bought Toronto-based Claymore
Investments, a Canadian ETF operation, from Guggenheim Partners
In October, BlackRock Chief Executive Laurence Fink told
Reuters it was looking at a "fill-in ETF acquisition in another