Dinakar Singh's New York hedge fund TPG-Axon Capital Management is absorbing London's Montrica Investment Management to create a firm with $9bn (€6.8bn) in combined assets.

The planned merger, which brings two former Goldman Sachs Group traders back together, is one of the bigger hedge-fund tie-ups at a time of industry consolidation and with more mergers expected. The deal was earlier reported by the Financial Times.