Investec Wealth & Investment UK has agreed to merge with UK wealth manager Rathbones in an all-stock deal creating a £100 billion ($123.3 billion) wealth business, an Investec spokesperson confirmed.
The transaction, which is expected to close in the fourth quarter, will issue new Rathbones shares in exchange for 100% of Investec W&I UK’s share capital.
Investec W&I UK’s parent company, Investec Group, will become a shareholder in the expanded company, with a stake of approximately 41.25%.
The deal values Investec W&I UK at £839m, according to a news release on Tuesday.
The companies said Tuesday that the merger will enhance investment management, financial planning and create multi-channel sales capabilities across private clients, brokers and charities.
An integrated business, the Enlarged Rathbones Group is headquartered in Investec’s offices and operates across the UK. Clive Bannister will continue to serve as chair, along with his executive team, reporting to Rathbones CEO Paul Stockton.
The merger is subject to Rathbones shareholder approval and regulatory approvals, including the UK’s Financial Conduct Authority, which is expected in the second quarter.
“This transaction not only presents a compelling strategic and financial rationale, but also accelerates Rathbones’ growth strategy. Operation at scale will enable the group to offer an even more compelling proposition to clients and colleagues.” We are able to support future growth and create significant value for Rathbones shareholders,” Bannister said in a news release.
Investec Group CEO Fani Titi added in the release: “
