Rathbones buys Investec's UK wealth management business

Source: Pixabay

The enlarged Rathbones group will remain an independent company operating under the Rathbones brand out of the London office, with Investec as a long-term, strategic shareholder.

Investec will be a minority shareholder in the enlarged Rathbones entity. Investec will have a 41.25% shareholder stake and 29.9% voting rights.

The merger of Investec Wealth and Investment UK and Rathbones wlll create the UK’s leading discretionary wealth manager, with about £100bn in funds under management and administration.

This will deliver the scale that will underpin future growth.

Nishlan Samujh, group finance director, Investec notes that the merger came about in an active consolidating market and brings together businesses that share a common heritage.

The merger will mean annual cost and income synergies of about £60m, said Samujh.

"The UK wealth market has been consolidating over the years... and really building businesses of scale," he said. "We, for example, consolidated with Rensburg back in 2005... and as times move on we've got to have quite a significant investment in technology, ensuring your best of market in terms of approach to clients."

The combination is subject to, among other things, Rathbones shareholder and regulatory approvals.