BlackRock, Merrill Lynch Announced Blockbuster Merger

BlackRock and Merrill Lynch reached an agreement Wednesday that will create a company with nearly $1 trillion in combined assets under management.

BlackRock will acquire Merrill Lynch Investment Managers from its parent company in exchange for an almost 50% stake in the combined company, which will retain the BlackRock name. The transaction has been approved by the boards of directors of both companies and is expected to close in the third quarter.