US firm Janus Capital Group plans to merge with Henderson Global Investors an $6bn all-share deal, creating a fund house with more than $320bn in assets under management.

The tie-up will result in a “leading global active asset manager with scale, diverse products and investment strategies and depth and breadth in global distribution” a joint statement said on Monday.

Dick Weil, Janus Capital chief, described the move as a “transformational combination,” adding that Janus brings a strong platform in the US and Japanese markets, complemented by Henderson’s strength in the UK and Europe.

Andrew Formica, Henderson’s CEO, said that Henderson and Janus are “well-aligned” in terms of strategy, business mix and active asset management.

The transaction is expected to close in the second quarter of 2017, pending shareholder and regulatory approvals. 

Janus’ largest shareholder, Dai-ichi Life, has already backed the deal.

Under the terms, Henderson shareholders would control about 57% of the new company.

Shares in the Henderson, currently listed on the London Stock Exchange and ASX, shares jumped 14% in early trading in London on Monday after the announcement.

Both Formica and Weil will lead the enlarged firm – called Janus Henderson Global Investors -  with the combined group taking a primary listing on the New York Stock Exchange. 

Cost savings of at least $110m a year are being targeted.

Analysts at broker Numis Securities reckons the takeover could trigger more M&A activity in the sector, added that the Janus - Henderson deal "looks sensible". 

“We anticipate an increasing level of M&A activity, predicated on low industry organic growth and margin pressures,” read a Numis note on Monday.

Jefferies analyst Phil Dobbin added: "Given the headwinds Henderson (and the industry) has been facing, it makes a lot of sense to scale up with someone that has a complementary geographic and product suite and this is exactly what Janus provides."