In a strategic move that’s sending tremors through the London investment world, Henderson European Trust and Fidelity European Trust have announced plans to merge, forming a heavyweight £2.1 billion ($2.8 billion) European equity investment vehicle. The bold consolidation comes on the heels of a leadership shake-up and is poised to reshape how investors approach continental markets.
A Merger Born of Crisis
The deal was catalyzed by the shock resignation of Henderson’s two co-portfolio managers in January, a leadership vacuum that triggered a sweeping internal review. Following conversations with shareholders, Henderson’s board determined that joining forces with Fidelity would best serve its investors.
“The sudden departure of the company’s two co-portfolio managers, together with our subsequent engagement with shareholders, prompted the board to undertake a comprehensive review,” said Vicky Hastings, chair of Henderson European. “The board concluded that a combination with Fidelity represents the best outcome for our shareholders.”
No explanation has yet been given for the abrupt exits.
