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Rothschild & Company to Acquire Compagnie Financière Martin Maurel
Rothschild & Company said on Monday it had agreed to acquire Compagnie Financière Martin Maurel in a deal that would unite two long-established family names in French banking.
As part of the deal, the companies would combine their private banking and asset-management operations in France to create a private bank with 34 billion euros, or about $39 billion, in assets under management.
The transaction values Martin Maurel at €240 million.
Under the terms of the deal, Martin Maurel investors would be offered 126 Rothschild shares for each share they own. The Maurel family would receive Rothschild shares in the merger.
"Our two companies share an independent family model that is a real strength when compared to our competitors," David de Rothschild, the Rothschild chairman, said in a news release. "This transaction would strengthen and ensure the continuity of this model."
Shares of Rothschild rose about 5 percent to €24.41 in trading in Paris on Monday morning.
Martin Maurel traces its roots to 1825, with the founding of Banque Martin Frères. Its main asset is an 88 percent stake in Banque Martin Maurel, a family-owned private bank that employs about 400 people in France.
In 2015, Martin Maurel reported net banking income of €102.7 million and had a loan portfolio of about €1 billion.
The transaction would be financed through newly issued shares, as well as cash and debt.
The deal is subject to shareholder and regulatory approval and is expected to be completed by the end of the year.
"We believe that the combination of our two groups would strengthen the model of the independent family bank," Bernard Maurel, the Martin Maurel president and chief executive, said. "This alliance would enhance our expertise to benefit our clients and our teams, and to face future challenges with confidence."
Rothschild is one of the world's largest independent financial advisory groups, with about 2,800 employees in 40 countries worldwide. It has three main businesses: global financial advisory; private wealth and asset management; and merchant banking.
In the 2014-15 fiscal year, the company reported revenue of €1.4 billion.
Rothschild's wealth and asset management business had €48.3 billion in assets under management as of the end of September. That included about €10 billion in its French private banking business.
[Source: By Chad Bray, International New York Times, London, 06Jun16]
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