Rathbones and Investec W&I to merge

The Port of Liverpool Building

Rathbones and Investec Wealth & Investment are to merge in a deal which will create a group looking after £100bn funds.

The deal values Investec W&I at £839m and will result in Investec Group becoming a long-term, strategic shareholder in the enlarged Rathbones Group.

Investec W&I’s stake will give it a 41.25% economic interest in the group although its voting rights are limited to 29.9%.

Clive Bannister

Clive Bannister, chair of Rathbones, said: “This transaction not only presents a compelling strategic and financial rationale, but also accelerates Rathbones’ growth strategy.

“Operating at scale allows the group to offer an even more attractive proposition to clients and colleagues, supporting future growth and creating significant value for Rathbones’ shareholders.”

Rathbones started in Liverpool, originally as a timber merchant 300 years ago, before moving into shipping and overseas trade. It has been managing money since the start of the 20th century. Its Liverpool base is the iconic Port of Liverpool building.

Rathbones will merge with Investec Group’s wealth and investment businesses in the UK and Channel Islands, but the agreement does not include Investec Bank (Switzerland) AG and Investec Wealth & Investment International (Pty).

Investec W&I UK currently has 325 investment managers and 45 financial planners across 15 offices, including Liverpool and Manchester.

The combined business will be a discretionary wealth manager with approximately £100bn in funds under management and administration (“FUMA”).

The merger is expected to create £60m of annual cost savings, through the consolidation of technology platforms and operations, third party services, and property, as well as additional net interest income by moving Investec W&I’s cash on to Rathbones’ platform and banking licence.

Fani Titi, Investec Group chief executive, added: “The strategic fit of the two businesses is compelling with complementary strengths and capabilities to enhance the overall proposition for clients. This will be supported by the strategic partnership which offers attractive growth and collaboration opportunities for both groups.

“The transaction represents a real step-change and long-term opportunity for our UK wealth strategy, underscores our commitment to the UK wealth management market and enhances our UK business as a whole.”

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