Former Barclays bankers ready for harder times

Former Barclays veterans Bob Diamond and Rich Ricci have agreed to an all-share merger of Panmure Gordon and UK rival Liberum, the firms said on Tuesday, creating Britain’s largest independent investment bank amid an extended deal-making slump in the country.

The merger is intended to steer the enlarged group through challenging times for Europe’s investment banks, with business hurt by rising geopolitical tensions and interest rate uncertainties.

Global investment firm Atlas Merchant Capital, led by Diamond, will provide financial backing and liquidity for the enlarged group, the companies said. Diamond’s relationship with Panmure began in 2017, when his firm teamed up with an investment vehicle owned by the Qatari royal family to buy the company.

Panmure CEO Ricci will take the helm of the merged entity, while Shane Le Prevost, founder and executive director at Liberum, will take the role of nonexecutive chair.

The deal is expected to bring “cost and revenue synergies”, as well as balance sheet strength to invest in growth and diversification opportunities, the companies said.

“This merger will lift the level and quality of service to midand small-cap businesses and investors in the UK and beyond,” Diamond, founding partner and CEO at Atlas Merchant Capital, and former Barclays Group CEO, said in a statement.

Ricci served in several top roles during his 19 years at Barclays, including co-CEO of corporate and investment banking, and COO of Barclays Global Investors.

“Over the last three years we have doubled our corporate client base, made significant investment in talent and materially increased our share of the UK market across our trading and execution capabilities,” he said.

Panmure is the retained adviser to more than 150 listed companies and funds with a 130-strong staff in London, New York, Leeds and Cambridge.

THIS MERGER WILL LIFT THE LEVEL AND QUALITY OF SERVICE TO MID- AND SMALLCAP BUSINESSES AND INVESTORS IN THE UK AND BEYOND

Liberum advises more than 110 corporate clients across the UK and North America, according to its website.

According to the companies, the combined entity would be ranked number one by deal volume for UK listings under £1bn market capitalisation over the last five years.

Data from consultant EY this week showed a 3% fall in European merger and acquisiton deals in 2023, with 641 deals across the region, compared to 661 deals in 2022./Reuters