An all-share deal that will see UK wealth manager Rathbone buy rival Investec’s wealth and investment arm in the UK will go ahead on 21 September after the two received regulatory clearances to merge and create an enlarged Rathbones entity.
Read: Rathbones buys Investec UK wealth unit in £839mn deal
The £839 million merger was announced in April, with Investec expected to be the minority shareholder in the bigger Rathbones, taking a 41.24% stake and 29.9% voting rights. They said the deal would effectively create a wealth manager overseeing around £100 billion in funds under management and administration.
In a shareholder filing on Wednesday, Investec said all regulatory clearances had been received and that the combination and issuance of the Consideration Shares to the Investec Group is expected to go ahead next month.
This is subject to the Financial Conduct Authority (FCA) and the London Stock Exchange (LSE) agreeing to admit the Consideration Shares to the premium listing segment and trading on the London bourse’s primary market for listed stocks.
Both parties’ responsibility also includes verifying that there have been no material adverse changes concerning Rathbones or Investec Wealth and Investment UK.
“Completion will mark the beginning of a long-term strategic partnership between Investec and Rathbones that will enhance the client proposition across banking and wealth management services for both groups,” Investec said on Wednesday, adding that the move reflects its commitment to the attractive UK wealth management sector.
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