UK Firm Smith & Williamson in £2bn Merger Talks with Rathbones Brothers

Tuesday, August 29, 2017 Print Email

Funds management firm Rathbones Brothers is in talks with Smith & Williamson regarding a potential £2bn merger that would see another consolidation in the concerned industry sector.

The market value of Rathbones is approximately £1.4bn and the firm also manages client funds worth £32bn through its Investment Management division. The proposed deal is expected to value Smith & Williamson Around £600m.
Smith & Williamson is a little different proposition as it operates both as a fund manager and accountancy firm. Smith & Williamson manages funds worth around £19bn for its clients and also has fee income of £222.5m with reference to its tax and accountancy services as per the Accountancy’s Top 75 firm’s survey.

Rathbones has confirmed that discussions with regards to the proposed merger have been under way from some time and that both the companies are confident that the combination of the two companies would benefit the stakeholders of both the entities.
Rathbones has further said that discussions are still on and nothing can be confirmed at this stage whether any transaction will be agreed between the two parties. In case of any transaction getting agreed between the two boards, it will still require approval of the shareholders of Rathbones.

Smith & Williamson said in a statement that it is discussing with Rathbones the prospect of a merger of the two companies. If any transaction that gets agreed between the two boards then it will still require approval from the shareholders of Smith & Williamson.
The largest shareholder of Smith & Williamson, AGF, which holds 32.3% shares of the accountancy firm, confirmed that the company is currently discussing with Rathbones about a possible merger of the two companies.

AGF has also said that while discussions regarding a possible merger have been underway for a long time but there is no certainty as to these discussions will lead to a transaction between the two companies.

Source: ReadyRatios

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