Brookfield confirms acquisition of remaining stake in Oaktree for ~$3B

Brookfield (NYSE:BN [https://seekingalpha.com/symbol/BN]) (TSX:BN:CA [https://seekingalpha.com/symbol/BN:CA]) stock was surging as the investment firm confirmed [https://seekingalpha.com/pr/20263067-brookfield-to-acquire-remaining-interest-in-oaktree] the acquisition of ~26% interest in Oaktree that it does not already own for about $3B.

Brookfield Asset Management (NYSE:BAM [https://seekingalpha.com/symbol/BAM]) (TSX:BAM:CA [https://seekingalpha.com/symbol/BAM:CA]) and Brookfield are set to acquire the remaining common equity interests in the target company.

Shares were +3.18% Monday pre-market to $44.40.

A credit solutions company, Oaktree Capital Management, externally manages Oaktree Specialty Lending (OCSL [https://seekingalpha.com/symbol/OCSL]).

Brookfield Asset Management is set to fund ~$1.6B of the transaction value, while the parent will fund the remaining $1.4B.

Oaktree shareholders will have the option to elect consideration in the form of cash, shares of BAM, or shares of BN.

BAM and BN intend to acquire a number of their own shares corresponding to the amount issued under the transaction.

The purchases are expected to be conducted on the open market.

The proposed transaction is expected to close in the first quarter of 2026.

Marks Karsh, co-chairman and chief investment Officer of Oaktree, will remain on the BN board, and Bruce Karsh will join the BAM board upon or prior to closing of the deal.

Robert O'Leary and Armen Panossian, co-CEOs of Oaktree, will also become co-CEOs of Brookfield's credit business.

The transaction is expected to bolster the company's distributable earnings by providing increased participation in the net carried interest earned from Oaktree funds and its balance sheet investments.

"When we partnered with Oaktree six years ago, we joined forces with one of the world’s most respected credit investors, and the results have surpassed our expectations," said Brookfield CEO Bruce Flatt.

"With this closer alignment, Oaktree will remain central to Brookfield’s credit strategy, and we see significant opportunities to grow the franchise and expand what we can offer our clients together," said Howard Marks, co-chairman of Oaktree.

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* Brookfield to buy outstanding 26% in Oaktree Capital Management for ~$3B - report [https://seekingalpha.com/news/4503554-brookfield-to-buy-outstanding-26-in-oaktree-capital-management-for-3b---report]