US-based asset management firm Federated Investors has completed the acquisition of 60% stake in British peer Hermes Fund Managers from BT Pension Scheme (BTPS).

Hermes, which operates as Hermes Investment Management, manages £33.6bn in strategies covering high-active share equities, credit as well as private market. The firm will continue to be based in London.

Hermes CEO Saker Nusseibeh said: “Today, Hermes joins with Federated to form a truly global asset manager―dedicated to active management―with mutually beneficial distribution capabilities that leverage both Federated’s extensive network of financial intermediaries in the U.S. and Hermes’ fast-growing client base in the U.K, continental Europe and Asia.”

Federated first announced plans to buy the stake for £246m in April this year. The total deal price has now been increased to £259.9m after Federated paid an extra £13.9m mainly for its 60% share of Hermes’ excess regulatory capital.

BTPS will retain a 29.5% stake in Hermes, while Hermes management will hold a 10.5% stake in the business.

Federated president and CEO J. Christopher Donahue said: “As environmental, social and governance considerations play a growing role in investment portfolios, we look forward to bringing Hermes’ well-performing ESG integrated investment strategies to U.S. investors―through institutional separate accounts, mutual funds and ESG-related consultancy services.”