Planned merger between Rathbones and Smith & Williamson terminated

UK accountancy giant Smith & Williamson has announced that negotiations for a £2bn merger with FTSE 250 firm Rathbones have come to an end, with Smith & Williamson seeking a potential stock market listing instead.
A spokesman for Smith & Williamson said in a statement: “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 contrast, Rathbones’ CEO Philip Howell said, “We continue to believe that our proposition was both a compelling strategic and value creation opportunity for all Smith & Williamson’s stakeholders.”
Rathbones has revealed that it has incurred £5m of merger-related expenses.
Some analysts have expressed scepticism about the planned merger, with Andrew Watson from N+1 Singer stating that for the merger to add value for Rathbones’ shareholders, cost savings must be “considerable”.
For more information on the M&A market and specifically selling your business to Rathbones, contact Gwill Evans –