Tom Montag, president of Bank of America's Global Banking and Markets Group, will continue to serve on BlackRock’s board, signaling both companies’ intent to continue delivering products and services to their shared clients, BlackRock announced Thursday in a news release.
BlackRock CEO and Chairman Laurence D. Fink said in a statement that the stock repurchase as well as the company’s recent dividend increase show BlackRock’s commitment to growing shareholder value through effective use of its significant free cash flow.
"We are pleased to have worked with Bank of America Merrill Lynch to transition their ownership stake over the past six months, working in close partnership to realize value for all of our shareholders,” Fink said. “At the same time, we have reaffirmed our mutual commitment to our strategic relationship.”
In 2006, Merrill Lynch sold its asset management division to BlackRock in exchange for a 49% stake valued at $9.4 billion, helping BlackRock become a global investment powerhouse. At the height of the financial crisis in 2008, Bank of America acquired the shares when it bought Merrill Lynch. As of March 31, BlackRock’s assets under management totaled $3.65 trillion.