Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Acquisition vehicle AssetCo to buy UK investment firm River & Mercantile

Stock MarketsJan 25, 2022 16:55
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

(Reuters) -UK-based acquisition vehicle AssetCo said on Tuesday it will buy investment and consulting firm River & Mercantile Group (RMG), in a deal, which along with a planned capital return, will value RMG at 289 million pounds ($389 million).

AssetCo fought off investment manager Premier Miton, which pulled out of rival talks for RMG earlier this month.

Under the terms of the deal, River & Mercantile shareholders will get 0.07392 of a new AssetCo share for each share held, totalling 98.8 million pounds.

In addition, shareholders are due a return of capital from RMG's planned sale of its UK Solutions pensions business to Schroders (LON:SDR), bringing their total payout to 289 million pounds.

RMG shareholders will own 41.6% of the combined group, AssetCo said in a statement.

RMG shares rose as much as 8.8% on Tuesday to a near two-month high of 322 pence, before ending the day 1.4% higher on the London Stock Exchange.

Asset managers which actively manage funds, such as RMG, have been bulking up in recent years to cut costs and fight off competition from rivals running cheaper passive, or index-tracking, funds.

AssetCo has bought three other asset management businesses in the past year.

"We are very keen on the active equity business because I think the markets are going to come our way in terms of that type of business," AssetCo Chairman Martin Gilbert told a media call.

Gilbert, a former co-CEO of abrdn, is also deputy chairman of RMG.

Numis and Arden Partners advised AssetCo and Lazard and Fenchurch Advisory advised RMG.

Later in the day, RMG said in a separate statement that it would sell its U.S. Solutions business to Agilis Holding Co LLC for $8.6 million, adding that the transaction was expected to complete in the second quarter of 2022.

($1 = 0.7437 pounds)

Acquisition vehicle AssetCo to buy UK investment firm River & Mercantile

Related Articles

Dow Futures Up After 8 Weeks of Decline
Dow Futures Up After 8 Weeks of Decline By - May 22, 2022

By Oliver Gray - U.S. stock futures moved higher in Sunday’s evening deals after major benchmark indices finished the week lower amid a broad market sell-off as...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email