Chase Agrees to Acquire Robert Fleming

Chase Manhattan Corp. said it’s paying $7.6 billion in cash and stock for Robert Fleming Holdings Ltd., a British investment bank and asset management group, in a bid to help it become a bigger player in global investment banking. Chase, the third-largest U.S. bank with about $406 billion in assets, has agreed to pay $4.1 billion in cash and $3.5 billion in common stock for Robert Fleming, one of Britain’s last independent financial companies. The deal requires regulatory approval. Chase Chief Executive William Harrison said the buyout would benefit clients of both firms through the delivery of a wider range of investment banking products and services. The deal would give Chase one of the “premier asset management brands” in Asia and Europe, Harrison said. He said Robert Fleming is also strong in the securities business in Asia, particularly in the state-owned sector, where Chase has been weak. Robert Fleming dates to 1873, when its founder set up a trust to invest in the booming U.S. railroad industry. The deal was initially valued at $7.7 billion, but shares of New York-based Chase dipped $2.13 to close at $86 on the NYSE.

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