LONDON, June 26 (Reuters) – British investment trusts Alliance Trust (ATST.L), opens new tab and Witan (WTAN.L), opens new tab have agreed to merge to create a company managing 5 billion pounds ($6.33 billion) of assets, in the latest example of consolidation in the fund management sector.

The newly formed Alliance Witan is expected to be eligible to join the FTSE 100 blue chip index, the companies said, adding that the deal would likely result in lower fees for customers and was expected to complete by the end of this year.