SYDNEY: Magellan Financial Group Ltd. said Monday it will merge with Barrenjoey Capital Partners, creating a diversified Australian financial services group with strengths in investment management, corporate finance, equities, fixed income and capital markets.
The deal values Barrenjoey at A$1.6 billion, with Magellan set to issue more than 106 million new shares to complete the transaction. On completion, Magellan will own 100% of Barrenjoey.
The merger is expected to close in the second quarter of 2026, subject to shareholder and regulatory approvals.
Magellan Chairman Andrew Formica called the deal “a transformative step in MFG’s evolution, bringing together two highly complementary businesses to create an Australian financial services group with meaningful scale and breadth.”
Barrenjoey Chairman David Gonski AC said, “This is a proud moment for Barrenjoey. Five years ago, a group of talented professionals came together with a vision to build an independent, Australian-headquartered financial services firm that could compete at the highest levels.”
Under the agreement, David Gonski will become independent chair of the combined group, while Brian Benari will serve as group CEO. Barclays, a founding partner of Barrenjoey, will retain a minority stake and continue its strategic partnership.
Magellan said the merger will improve business diversification, enhance client offerings, strengthen its balance sheet and help attract top talent.
Shareholders will vote on the proposal at an extraordinary general meeting in April. An investor briefing is scheduled for later today.