Legg Mason shareholders have given the go-ahead to the proposal for merger with Baltimore-based investment manager Franklin Templeton.
Over 99% of Legg Mason shareholders approved the transaction. The transaction is now pending regulatory nod.
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The all-cash deal worth $4.5bn to buy Legg Mason was announced in February this year.
Franklin Templeton will pay $50 per share cash for Legg Mason stock.
Under the agreement, Franklin Templeton will also assume around $2bn of Legg Mason’s debts.
San Mateo, California-based Franklin Templeton is said to become one of the largest independent, specialised global investment managers globally with the addition of over $763bn of assets overseen by Legg Mason.
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By GlobalDataThe consolidation of the two businesses will offer an investment platform, which is well balanced between institutional and retail client assets, Legg Mason said.
It is also said to strengthen Franklin Templeton’s footprint in key geographies.
Franklin Templeton’s assets are expected to increase to $1.5trn post deal completion in the third quarter of this year.
The merged business will operate as Franklin Templeton.
Legg Mason chairman and CEO Joseph Sullivan said: “As we continue our planning to integrate our two great companies, I’m excited for the possibilities of a new organisation that continues to prioritise our clients, the ongoing independence of our investment organisations and a broad distribution footprint.”
