Mubadala Capital to Acquire CI Financial in USD8.7 Billion Deal

Hani Barhoush, Mubadala Managing Director & CEO

Abu Dhabi's Mubadala Capital is set to acquire Canadian asset manager CI Financial in a C$12.1 billion ($8.66 billion) all-cash deal, including debt. The offer of C$32 per share marks a 33% premium over the stock’s previous close, boosting shares by 30% following the announcement. The acquisition aims to bolster CI’s U.S. wealth management operations, which have seen significant growth in recent years under an aggressive expansion strategy.

CI Financial has faced mixed reactions from investors due to its debt-financed acquisitions in the U.S. market. As of September 2024, the company’s U.S. assets had grown by over 50% since 2022. Despite past criticisms, the Mubadala deal brings a promise of long-term stability. CI’s CEO, Kurt MacAlpine, highlighted Mubadala’s commitment to long-term investment as a key factor in providing certainty for clients and employees.

Source: Pritam Biswas / Reuters