Rathbones and Smith & Williamson merger scrapped
Smith & Williamson has announced the termination of its merger negotiations with Rathbones, and revealed it intends to pursue a stock market listing instead.
As reported, Rathbones and Smith & Williamson admitted that they were negotiating a deal to combine the two companies with Rathbones the lead organisation.
However, the UK accountancy and wealth manager firm Smith & Williamson, said in a statement released last night (31 August), that the two companies had been “unable to reach agreement on terms”.
The statement read: “Following our growth and business development in recent years, the board had agreed to prepare the company for a potential stock market listing. While we were pursuing this course, we were approached by Rathbones.
“After careful consideration, we have been unable to reach agreement on terms which would be in the best interests of all our stakeholders.”
In a statement on the London Stock Exchange Rathbones said that it was unable to strike a deal in the “best interests” of its shareholders following “very extensive due diligence and negotiations”.
Rathbones chief executive Philip Howell said in the statement: “We continue to believe that our proposition was both a compelling strategic and value creation opportunity for all Smith & Williamson’s stakeholders.
“The potential combination was intended to accelerate Rathbones’ existing strategy, but ultimately we were unable to agree terms that offered our shareholders an appropriate balance of risk and reward.”
Rathbones said it has incurred expenses of £5m relating to the merger, according to reports in The Financial Times.
Earlier this week, reports by Sky News suggested financial planning and wealth management firm Tilney had also tabled a bid for Smith & Williamson.