Liverpool wealth manager Rathbones clears regulatory hurdles on its £839m takeover of Investec Wealth & Investment, creating a business with £100bn of funds under management. Tony McDonough reports

Rathbones says it has cleared the regulatory hurdles on its £839m takeover of Investec Wealth & Investment with the deal expected to complete in September.

Reported in LBN in early April, the deal will see Liverpool-based Rathbones create an enlarged wealth management business with £100bn of funds under management.

This latest development comes days after Rathbones, which is based in the Port of Liverpool Building, revealed it had grown its funds under management to more than £60.5bn and generated income of £238m in its half year results.

However, pre-tax profits for the six months to June 30 fell to £26m from £32.6m for the same period in 2022. Statutory profit before tax included £11.2 million of costs relating to the merger with Investec W&I, largely professional and legal fees.

Rathbones was started by the Rathbone family in Liverpool in the 1720s as a timber merchant. It later moved into shipping, overseas trade and financial services.

Investec W&I is the wealth management of the Investec Group, which is listed on both the London and Johannesburg stock exchanges. Investec has a Liverpool team based at The Plaza in St Paul’s Square.

Rathbones will take on Investec’s wealth and investment businesses in the UK and Channel Islands. The deal excludes Investec Bank based in Switzerland and the international wealth arm.

In an announcement to the stock exchange on Wednesday said: “Rathbones announces that all regulatory clearances in respect of the combination have been received.

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“Accordingly completion of the combination and admission of the new ordinary shares is now anticipated to occur on September 21, 2023.”

It added the deal was still subject to agreements from the Financial Conduct Authority and London Stock Exchange.

Speaking in April, Clive Bannister, chair of Rathbones, said: “This transaction not only presents a compelling strategic and financial rationale, but also accelerates Rathbones’ growth strategy.

“Operating at scale allows the group to offer an even more attractive proposition to clients and colleagues, supporting future growth and creating significant value for Rathbones’ shareholders.”