Date
19 October 2017
Russell Investments is a provider of widely used equity indexes. Photo: American Hydrotech
Russell Investments is a provider of widely used equity indexes. Photo: American Hydrotech

CITIC in talks to buy Russell Investments

CITIC Group Corp. is in talks to acquire Seattle-based global asset management firm Russell Investments from London Stock Exchange Group plc, Reuters reported, citing unnamed sources.

The deal is expected to be worth roughly US$1.8 billion, it said.

The acquisition of Russell, if it goes through, would give CITIC, a Chinese state-owned investment conglomerate that has a financial services arm and owns CITIC Asset Management Corp., an entry into the US market.

LSE bought Russell last year for US$2.7 billion, primarily for its large business providing stock market indexes.

Financial News reported earlier this month that CITIC had emerged as the front-runner in a shortlist of bidders for Russell, which included US professional services firm Towers Watson & Co. and Shanda Group, a Chinese investment holding firm that began as a maker of online games.

Last week, insurance broker Willis Group signed an agreement with Towers Watson to combine the companies in an all-stock deal with an implied equity value of about US$18 billion.

That deal could make it difficult for Towers to proceed with an acquisition of Russell, one of the sources said.

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