BlackRock to acquire Claymore

Canada’s dominant provider of exchange-traded funds will acquire its chief competitor, in a deal announced Wednesday for an undisclosed amount of money.

BlackRock Inc., owner of the iShares family of ETFs, which account for more than two-thirds of the domestic market, has entered into an agreement to acquire Claymore Investments Inc.

Toronto-based Claymore sold two years ago to Guggenheim Partners LLC, which retained both the Claymore brand in Canada as well as the company’s founder and chief executive Som Seif.

Late last year, Guggenheim began seeking buyers.

The innovative Claymore has established itself as Canada’s second-biggest ETF provider, commanding about 16% of the market with assets under management of $6.7-billion as of the end of December.

Still, that market share pales compared to BlackRock’s stronghold.

The world’s biggest money manager has Canadian ETF’s representing $28.6-billion in market share. It accounts for nine of the 10 largest domestic funds. The iShares SP/TSX 60 Index Fund alone has more than $11-billion in assets under management, having added $920-million in net new assets last year.

“BlackRock’s global breadth and scale provide an excellent platform for Claymore Canada to begin its next, exciting chapter,� Mr. Seif said in a release.