Sky News - Asset managers in advanced talks on merger

Rathbone Brothers is in advanced talks about a £2bn merger with Smith & Williamson in a bold move that would accelerate the consolidation of the w‎ealth management sector.

Sky News has learnt that Rathbone‎s, which has a market value of about £1.4bn, is close to agreeing the formal terms of a deal to combine with S&W in an all-share merger.

The alliance will attribute a valuation of close to £600m to S&W, a market source said this weekend, and will involve issuing Rathbones shares to its target's investors.

A deal is expected to be announced within weeks, according to insiders, although they warned that it could be delayed.

If completed, it would be among the City's most significant transactions so far this year, coming at a time of shifting regulation for wealth managers and bringing together two companies employing roughly‎ 3000 people in total.

Combining the two businesses would give Rathbones access to S&W's network of specialist tax and financial advisers at a time when clients are seeking ‎increasingly sophisticated services from wealth management firms.

Hit the link below to access the complete Sky News article:

Rathbones plots £2bn merger with wealth rival Smith & Williamson

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