BlackRock Inc., the world’s largest exchange-traded fund provider, has an “edge” over State Street Corp. in buying Credit Suisse Group AG’s ETF business, according to Citigroup Inc. analysts.

An acquisition would allow BlackRock to bolster the presence of its iShares ETF unit in Europe, Citigroup analysts led by William Katz wrote in a note today to clients. BlackRock has a history of integrating smaller asset managers and it has stronger financial flexibility, while State Street is more focused on returning capital to shareholders and could be restricted as a result of activist investors, according to the note.

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