ACCC approves Magellan, Barrenjoey merger

The Australian Competition and Consumer Commission (ACCC) has greenlit the merger between Magellan Financial Group and Barrenjoey Capital Partners.

The deal, which has an implied valuation of $1.6 billion, is expected to finalise in early July.

The ACCC's determination is unconditional and subject to the expiry of the statutory 14-day review period.

Magellan chair Andrew Formica said: "The ACCC's clearance is a significant milestone in the completion of the merger and brings us one step closer in our shared ambition to build one of Australia's leading financial services businesses."

He added Magellan has "built a recognised investment management franchise, supported by deep investment expertise and longstanding client relationships."

Magellan's board will put into motion a group rebrand following the merger, with shareholders to approve the proposal at the annual general meeting on October 22.

The company's name is set to change from Magellan Financial Group Ltd to Barrenjoey Group Limited. The ASX ticker code will also change from MFG to BJY.

Magellan Investment Partners, the group's investment distribution brand, will change to Barrenjoey Investment Partners.

"As we bring these two businesses together it is important that our brand reflects both the expanded capabilities of the combined group and the opportunities ahead," Formica said, adding that the name 'Barrenjoey' provides the strongest foundation for a unified brand.

In early May, Magellan confirmed job redundancies ahead of the merger, specifically affecting those who look after the global equities strategy.

Subsequently, the Magellan Global Fund - Open Class Units - Active ETF (ASX: MGOC) and Magellan Global Fund Hedged investment strategy changed to the Vinva Global Alpha Strategy. Vinva Investment Management was appointed as investment manager for the funds. The funds had about $5.3 billion in assets under management as at April 30.

Magellan, however, did not confirm the exact number of roles affected.

Established in 2010, Vinva has more than $47 billion in active strategy assets. Magellan has a 28% equity stake in Vinva.