Investec Plc and Rathbones Group Plc have entered into a deal that will create a UK wealth manager with combined funds of £100 billion ($124 billion).
(Bloomberg) — Investec Plc and Rathbones Group Plc have entered into a deal that will create a UK wealth manager with combined funds of £100 billion ($124 billion).
The asset managers have agreed to an all-share combination of Investec Wealth & Investment Ltd. and Rathbones, according to a statement Tuesday. The enlarged Rathbones Group will remain an independent company operating under the Rathbones brand with Investec as a long-term, strategic shareholder.
After the deal closes, Investec Group will own 41.25% of the economic interest in Rathbones’ share capital, but with voting rights limited to 29.9%, according to the statement. The terms of the combination imply an equity value of about £839 million for Investec W&I UK.
The new entity will operate out of Investec’s London office and both firms will enter into a relationship agreement, which includes two Investec representatives joining the board of the new group.
“The combination of Investec W&I UK and Rathbones brings together two businesses which have a long-standing heritage in UK wealth management and closely aligned cultures,” Investec Group Chief Executive Officer Fani Titi said in the statement. “The transaction represents a real step-change and long-term opportunity for our UK wealth strategy, underscores our commitment to the UK wealth management market and enhances our UK business as a whole.”
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.