BlackRock to become world's largest asset manager after deal with Barclays

Barclays (BCS) needed cash to bolster it's banking business. BlackRock (BLK) wanted to seal its position as the world's largest asset manager.

The two companies got their wishes when they sealed a deal today for BlackRock to buy Barclays Global Investors for $13.5 billion in cash and stocks. Barclays will take a 19.9 percent stake and get two seats on the board of the newly enlarged group to be called BlackRock Global Investors.