The proposed all-share merger of Rathbones Group and Investec Wealth & Investment has received regulatory clearance, according to both firms.
The deal is due to take place on 21 September, subject to agreement from the London Stock Exchange and the Financial Conduct Authority to list securities on the main market, and providing there is no “material adverse change” from either groups in the interim.
Both businesses will enter a “parallel run” phase after completion, with the firms operating in tandem while the integration is phased in. Client migration is not expected until 2025.
The proposal to combine both groups was first announced in April this year, with Rathbones agreeing to acquire Investec W&I for £839m. The merger will see Investec own 41.25% of the group’s capital and maintain 29.9% of shareholding rights.
Operating under the Rathbones brand, the deal will create a discretionary wealth manager with assets under management of more than £100bn.
Rathbones will nudge forward the payment of its final dividend to shareholders for the 2023 financial year, via a second interim dividend. The final dividend payment – which will be paid after the merger – will then be reduced accordingly.
Rathbones CEO Paul Stockton said: “This is good news and means we are now in the very final stages of bringing IWI UK and Rathbones together. Unanimous approval from our regulators is a positive indicator of the strength of this deal, and of the advantages we expect it to deliver for clients.
“The next few months will be focused on making the integration as seamless as possible for everyone, keeping client service as our highest priority.”
A spokesperson for Investec said the completion will “mark the beginning of a long-term strategic partnership between Investec and Rathbones that will enhance the client proposition across banking and wealth management services for both groups”.
