Merger talks between Rathbones and S&W collapse

Talks over the widely anticipated £2bn merger between wealth managers Rathbone Brothers and Smith & Williamson have collapsed.

Listed business Rathbones – a company founded in Liverpool 275 years ago – was seeking to buy privately-owned rival S&W and is set to lose £5m as a result of the failed bid.

Rathbones chief executive Philip Howell said in a statement: “The combination was intended to accelerate Rathbones’ existing strategy, but ultimately we were unable to agree terms that offered our shareholders an appropriate balance of risk and reward.”

No reason was given as to why the bid had failed but indications were that S&W wanted more than Rathbones was prepared to offer.

The merger would have created a combined group worth about £2bn.

It was reported earlier this week that another rival Tilney was attempting to gatecrash the deal, but S&W preferred the Rathbones offer.