(Bloomberg) -- Jupiter Fund Management Plc is in advanced talks to acquire rival U.K. asset manager Merian Global Investors from private equity firm TA Associates Management, according to people familiar with the matter.
Jupiter could announce an agreement to buy the company for less than 500 million pounds ($652 million) in cash and stock as soon as next week, said one of the people, who asked to not be identified because the matter isn’t public.
The goal of the deal is to create a U.K. powerhouse in active asset management, the people said.
The talks come as active managers face increasing pressure to pair up amid heightened regulatory costs and intense competition from low-cost index and exchange traded funds. The idea: bringing more assets onto a platform can help lower compliance, regulatory and back-office costs.
Banco de Sabadell SA agreed in January to sell its asset-management business to Amundi SA for 430 million euros ($466 million).
Representatives for Jupiter, Merian and TA Associates declined to comment.
TA Associates, based in Boston, acquired Merian in 2018 from Old Mutual Ltd., the South African financial services conglomerate. Founded by U.K. veteran fund manager Richard Buxton, Merian had 22 billion pounds under management at the end of 2019, according to its website. Its biggest offerings are global and U.K. equities.
London-based Jupiter, run by Chief Executive Officer Andrew Formica, has about 45 billion pounds under management, according to its website.
--With assistance from William Canny.
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