According to media reports, Invesco is in talks to acquire Oppenheimer Funds in a $5 billion deal. The deal is expected to place Invesco’s assets under management to around $1.2 trillion, on par with large firms like BlackRock and Fidelity. The merger, according to the Financial Times, would be the biggest in the industry since the combinations of Aberdeen and Standard Life in 2016 and Janus and Henderson in 2017. Some industry observers see Invesco’s move as a response to increasing price pressure and the shift away from active management in the industry. Oppenheimer is primarily an active asset manager with a small number of ETFs. Industry analysts see several positives for Invesco if the merger is consummated, including cost savings and increased scale, new investment capabilities and distribution relationships. However, mergers can come with risks related to the integration of businesses and company culture and streamlining of product lines.