will continue to distribute BlackRock's
] products after Bank of America
, which owns Merrill Lynch, and PNC decided to sell a portion of their BlackRock stake. BlackRock and Merrill intend to enter into an amended distribution arrangement that is expected to have an initial term ending on January 1, 2014.
Here's an excerpt from BlackRock's SEC filing
Concurrently with the closing of this offering, BlackRock and ML&Co. also intend to enter into the Second Amended and Restated Global Distribution Agreement, which will further amend the original global distribution agreement that was entered into between ML&Co. and BlackRock at the time BlackRock's business was merged with ML&Co.ís investment management business in 2006.
The Second Amended and Restated Global Distribution Agreement is expected to have an initial term ending on January 1, 2014, with one automatic three-year extension if certain conditions are satisfied. The Second Amended and Restated Global Distribution Agreement is expected to amend the existing global distribution agreement between ML&Co. and BlackRock to clarify applicability of the global distribution agreement to certain economic arrangements and to detail certain of ML&Co.ís obligations with respect to revenue neutrality across the range of BlackRock products distributed by ML&Co. if ML&Co. changes either the economic terms applicable to, or the manner of, its distribution of those particular products.
Wall Street Journal
obtained a comment from PNC on the sale. PNC spokesman Fred Solomon told the pub that the bank sees its BlackRock stake as a "key component" of its revenue strategy. However, the firm viewed the sale as an opportunity to slightly adjust its risk.
BlackRock CEO Larry Fink
was not available to comment to the WSJ on Wednesday.
Armie Margaret Lee
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