US asset manager Blackrock is near a deal to buy Barclays Global Investors – the unit of British banking group Barclays which includes the iShares brand of ETFs. The Financial Times reports that negotiators from the two firms are close to a deal, which has yet to be finalized due to remaining differences on price.

Under the terms of the deal Barclays is expected to retain a stake in BGI, and its Barcalys president Bob Diamond will join Blackrock as a non-executive director. The price is expected to be above USD 10 billion, and would create a a firm with over USD 2.2 trillion in assets under management.

Barclays is desperate to raise cash as loses related to the financial crisis has left it severely undercapitalized and the sale of cash cow BGI is rumored to be mandated by British regulators.