Business
Magellan shares climb after ACCC clears Barrenjoey merger plan
Magellan Financial Group has secured competition approval for its proposed merger with Barrenjoey Capital Partners. The decision removes a major regulatory hurdle for the A$1.62 billion deal, which would combine asset management, advisory and capital markets operations while reshaping one of Australia's prominent financial services groups.
Key Highlights
- Competition regulator approved the proposed Magellan-Barrenjoey merger.
- Combined transaction is valued at approximately A$1.62 billion.
- Magellan reported FY2025 net profit of A$165 million.
- Assets under management reached A$39.9 billion in December 2025.
- Deal remains subject to shareholder and other final approvals.
Magellan Financial Group and Barrenjoey Capital Partners have received regulatory clearance for their $1.62bn deal-one of the most keenly awaited transactions in Australian finance this year-taking the combination closer to being finalised.
Australia's competition regulator will not oppose the transaction after deciding the likely competitive impact was minimal, the decision a significant roadblock removed after the deal was announced in March and before shareholder approval and other conditions can be met.
Combining Investment Banking and Asset Management
The deal would unite Magellan's investment management activities with Barrenjoey's investment banking, equities, research and fixed-income businesses.
The group, which would take a new name following completion, would be led by Barrenjoey chief executive Brian Benari as chief executive, with David Gonski as chairman and Magellan Investment Partners chief executive Sophia Rahmani in charge of the funds management operations.
The move is the latest demonstration of an intensifying trend within the Australian financial services sector as the country's institutions pursue scale and diversified earnings from their offerings in response to changing market conditions and client demands.
Financial Health of Magellan
Magellan entered the transaction in better financial shape than in prior years and booked a statutory net profit after tax of $165M for FY2025 while operating profit was up $159.7M for the same period.
Its assets under management stood at $39.6B at June 30 and had risen to $39.9B by the end of the year, while the company had zero debt.
Focus shifts to consolidation in the industry
The merger comes as the country's funds management industry-supported by the country's compulsory superannuation system-is one of the biggest in Asia and according to the Australian fund management industry Australia's superannuation assets total more than $4trillion, one of the largest capital pools in the world.
For investors, the news clears up much of the uncertainty over the future of the deal. Magellan's shares gained following the announcement with the market reacting positively to the removal of a significant regulatory obstacle.
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