City Of London

Rathbones Buys Investec UK Wealth Unit in £839 Million Deal

  • Purchase to create wealth manager with £100 billion in funds
  • All-share deal will mean annual synergy of about £60 million
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Rathbones Group Plc agreed to buy the UK wealth management business of Investec Plc in an all-share deal valued at £839 million ($1.05 billion).

Investec will be a minority shareholder in the enlarged Rathbones entity, with 41.25% stake and 29.9% voting rights, according to a statementBloomberg Terminal Tuesday. The combination will create a wealth manager with about £100 billion in funds under management and administration, the companies said.