Two French financial houses with strong family traditions are to merge.
Rothschild & Co, the French arm of the Rothschild family banking dynasty, and Compagnie Financiere Martin Maurel plan to merge. The move will combine their French private banking and asset management businesses and create a private bank with combined assets under management of about €34 billion ($38.6 billion), the firms said today.
The combined group will operate under the name Rothschild Martin Maurel in France.
Shareholders in Compagnie Financière Martin Maurel will be offered either 126 Rothschild & Co shares per existing share or, prior to completion of the merger, be able to sell their Compagnie Financière Martin Maurel shares in cash.
The vote on the transaction by the shareholders of Compagnie Financière Martin Maurel is secured; Compagnie Financière Martin Maurel has already received irrevocable support for the merger from shareholders representing more than the qualified majority required to vote for the merger, a statement from Rothschild & Co said. (Rothschild & Co in 2015 changed its name from Paris Orleans, creating controversy at the time with other European parts of the Rothschild family dynasty.)
Compagnie Financière Martin Maurel is valued at €240 million, with the 2015 dividend attached. The transaction will be financed by a mixture of newly issued Rothschild & Co shares, Rothschild & Co’s own cash resources and external credit facilities. The transaction is expected to have a modestly positive impact on earnings per share from the first full fiscal year post-merger, before synergies.
Rothschild & Co's supervisory board and Compagnie Financière Martin Maurel‘s board of directors have both favourably welcomed the principle of the merger. The merger is conditional on the approval of the shareholders of Compagnie Financière Martin Maurel and Rothschild & Co, as well as the usual conditions, in particular competition and regulatory authorities’ approvals.
The Martin Maurel group has been providing private banking, wealth management, asset management and financial advisory services to individuals, companies, foundations and associations since 1825. It has almost €10 billion of assets under management, of which €7 billion was for private banking at the end of 2015.