Justin Cash on why Rathbones’ recent regulatory and share price pain shows that M&A can be perilous
Mergers creating a £100bn wealth powerhouse don't happen every day. So when Rathbones announced it was joining forces with Investec Wealth & Investment in April 2023, there was understandable excitement. Fast forward a few years, and, last month, the combined firm's shares fell nearly 20% in a day. So, what happened? In short, news broke that Rathbones had agreed to stop taking on certain clients and stop others adding to their accounts after the Financial Conduct Authority probed the business. The potential hit to the firm? Well, combined, the gross flows under scrutiny amount to ...
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