Wealth managers eye mega merger

TWO of the City’s biggest financial services firms look set to merge to create a giant managing more than £50bn.

Wealth manager Rathbone Brothers has confirmed it is in exclusive talks with smaller financial services provider Smith & Williamson over a possible all-share merger.

It would be one of the biggest City deals so far this year, and is likely to lead to a windfall for hundreds of Smith & Williamson employees who could be handed shares in the combined group.

Rathbone said in a statement: ‘Discussions are ongoing and there can be no certainty any transaction will be agreed.’

Founded in 1742 as a family business, Rathbone now manages around £36.6bn and is on the FTSE 250. Smith & Williamson was founded in Glasgow in 1881. It says it now manages more than £19bn with 1,700 employees.