Brookfield Asset Management has bought a majority stake in major shipping investor Oaktree Capital Management.
The $4.7bn deal was announced today and will see Brookfield take a 62% position in Los Angeles-based Oaktree, creating a $475bn asset manager.
“As we continue to strategically grow Brookfield, we are thrilled to be partnering with Oaktree and with its exceptional management team whose credit business is second to none," Brookfield chief executive Bruce Flatt said.
Oaktree is a top shareholder of Star Bulk and Eagle Bulk and holds 3.1 million Euronav shares and 800,000 in Capital Product Partners. It also has 47.6 million shares in Torm through various subsidiaries and owns Seacor Holdings, Ship Finance International and DHT Holdings bonds.
Toronto-based Brookfield has shipping interests of its own in the offshore sector, with a controlling stake in Teekay Offshore and more than 76,000 shares in Tidewater.
The Brookfield-Oaktree deal is half cash and half stock, with Brookfield buying all of Oaktree's outstanding shares for $49 each or swapped for 1.077 Brookfield shares.
The two businesses will continue to operate independently and its management and investment teams will stay intact.
An analyst said that separation should temper any expectations of big near-term changes, as Brookfield evaluates the assets it acquired.
Oaktree co-chairman Howard Marks will join Brookfield's board of directors.
"Our firms share a culture that emphasises both investing excellence and integrity, and our businesses mesh without overlapping or conflicting," Marks said. "The rest of Oaktree management and I are excited about the combination of support and independence we expect."
