(Reuters) — Rothschild & Co (ROTH.PA) and Compagnie Financiere Martin Maurel (FNMM.PA) said they plan to merge, a move that will combine their French private banking and asset management businesses and create a private bank with combined assets under management of about 34 billion euros ($38.6 billion).
The deal values Martin Maurel at 240 million euros, and the transaction would be financed by a mixture of newly issued Rothschild & Co shares, Rothschild & Co’s own cash resources and external credit facilities, the banks said in a statement.
Martin Maurel shareholders will receive either 126 Rothschild & Co shares per existing share or can sell their existing shares in cash, the banks said. The Maurel family would receive Rothschild & Co shares.
The deal is expected to have a “modestly positive impact” on earnings per share from the first full year after the merger, before cost savings, the companies added.
($1 = 0.8817 euros)