Brookfield Asset Management Inc announced that it will buy most of Oaktree Capital Management. The rough estimation of investments for the deal is USD4.8 billion. Oaktree's stock underperformed for a continuous time period which led the decision to sell the majority stake. Oaktree’s stock is down around 13 percent in the last five years.

Oaktree is the second U.S. alternative-asset manager to sell itself in recent years since Fortress Investment Group agreed to be acquired by Japan’s SoftBank Group Corp for about $3.3 billion in 2017.

After the transaction, Blackstone’s assets under management will be at least USD650 billion, including debt, according to the firm´s spokesman.

Oaktree shareholders can exchange each of their shares for either $49 in cash or 1.0770 Class A shares of Brookfield. Brookfield said the total amount will be paid in 50 percent stock and rest in cash.

Both companies will continue to operate as independent businesses.