London-based wealth manager Rathbones confirmed yesterday that it is in exclusive talks with Smith & Williamson, a London-based investment house and accountancy practice.
FTSE 250 Rathbones said that the proposed £2 billion (€2.2 billion) merger, which would value privately-owned Smith & Williamson at £500 million to £600 million, “would bring meaningful benefits to the stakeholders of both businesses”.
Rathbones added that the two firms had been in talks “for some time” and that a further announcement would be made when appropriate.
If a merger goes ahead, the new entity would have almost 3,000 staff and more than £50 billion in assets.
A merger between the two firms would be the latest in a wave of consolidation in the asset management sector this year, following the high-profile merger of Aberdeen Asset Management and Standard Life as well as a tie-up between Henderson Group and Janus Capital.
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