Rathbones’s acquisition of Investec’s wealth and investment operations in the UK, announced this morning, will not only create what the companies say will be the “leading” wealth manager in the country, it will also be transformative for the company. Investec is now set to become Rathbones’s largest shareholder and will get two seats on its board.
(Bloomberg) — Rathbones’s acquisition of Investec’s wealth and investment operations in the UK, announced this morning, will not only create what the companies say will be the “leading” wealth manager in the country, it will also be transformative for the company. Investec is now set to become Rathbones’s largest shareholder and will get two seats on its board.
Here’s the key business news from London this morning:
In The City
Rathbones Group Plc : The investment company has agreed a deal to buy Investec Plc’s UK wealth & investment unit in an all-share deal that will create a business with approximately £100 billion in funds under management and administration.
- The deal values the unit at about £839 million, and Investec will get a 41.25% economic interest in Rathbones
- Rathbones Chair Clive Bannister said the scale provided by the deal would allow the company to “offer an even more attractive proposition to clients and colleagues, supporting future growth and creating significant value for Rathbones’ shareholders”
Saga Plc: The specialist in travel and insurance products for people over 50 said it has seen strong demand in its ocean cruise business, and had travel bookings significantly ahead of last year.
- Saga expects the travel business to return to profit this year, but its insurance underwriting business had to raise prices to reflect the rise in claims inflation
Renewi Plc: The recycling company expects year end profit to be slightly ahead of market expectations after it experienced low customer churn and steady volumes.
- Inflation was largely offset by controlling its pricing and costs
In Westminster
Nigel Lawson, the chancellor of the exchequer who presided over the boom-and-bust of Margaret Thatcher’s Britain in the 1980s, has died. He was 91. Read our obituary here.
Keir Starmer’s Labour Party has promised to boost police on the streets to tackle criminal damage. Law and order is becoming a key issue ahead of May’s local elections, with the conservatives also promising to get tough on crime by banning laughing gas and make vandals repair damage.
And Lisa Nandy, the shadow secretary of state for levelling up, housing and communities, pulled out of an event arranged by the Confederation of British Industry after the group faced allegations of misconduct.
In Case You Missed It
Yesterday, Teck Resources Ltd. revealed it had rejected an an unsolicited proposal from Glencore Plc and said it would forge ahead with a plan to separating its metals and coal divisions. Now, people familiar with the matter tell Bloomberg that Teck would entertain offers from potential suitors, after it has finished the spinoff of its steelmaking coal business.
Virgin Money UK Plc has started an investment platform with asset manager Abrdn Plc in a bid to grow beyond traditional retail bank offerings.
Looking Ahead
Tomorrow we’ll get some PMI data for March, showing how services and construction sector confidence has fared.
We’ll also have earnings from protein specialists Hilton Food Group Plc and oil producer EnQuest Plc.
For a more considered take on the UK’s economic and financial news, sign up to Money Distilled with John Stepek.
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