CIBC Is "Weighing A Bid" For LSE's Recently-Acquired Russell Investments - Report

Eliane Chavagnon

11 December 2014

Canadian Imperial Bank of Commerce is “weighing a bid” for Frank Russell Co's asset management business, which the London Stock Exchange Group is preparing to sell early next year, Bloomberg reported, citing people with knowledge of the matter.

In June, Northwestern Mutual agreed to sell Washington-headquartered Russell Investments to the LSE for $2.7 billion.

“With this acquisition we are strongly positioned for the changing dynamics in the global indices market with a best in class offering, which we believe will help deliver outstanding returns for our shareholders. We will work with Brennan and his team to review the investment management business and determine its fit with the group,” said Xavier Rolet, CEO of LSEG, at the time .

Bloomberg highlighted that LSE may decide not to sell the unit, but added that “it’s preparing to start an auction for the business” after January 1 - “due in part to strong market interest.”
One of the sources said LSE has been approached by over 30 potential buyers including banks, asset managers and private equity firms.

CIBC declined to comment when contacted by Family Wealth Report.

As previously reported by this publication, CIBC has been looking to grow its wealth management business – particularly since it bought Atlantic Trust Private Wealth Management this year.