Top City brokers to merge in pounds 54m deal

Gerrard & National and King & Shaxson, which have seen their traditional discount house operations virtually consigned to the history books by a change of policy at the Bank of England, are merging in a pounds 53.7m deal.

The two companies hope that the merger will lead to more opportunities in stockbroking and fund management, and said that the deal would also release pounds 25m of capital for investment and future acquisitions.

The combined group will have the largest private client stockbroking business in the UK, bringing together two well-known City broking firms - Gerrard Vivian Gray and Greig Middleton. The combined brokerage will trade as Greig Middleton.

Some cost savings will be made by making up to 100 staff redundant from the new Gerrard Group's money-broking and back-office operations. After the job cuts, the company will employ more than 900 people in its stockbroking arm, 420 in its derivatives broking operations and 30 on the money market side.

"It's a strategic move. The business of Greig Middleton fits very well with the business of Gerrard Vivian Gray. They are both on same back-office system and know each other very well. There's a common culture," said Mike Davies, chief executive of Gerrard & National.

The firms' discount house, or money market operations, will be merged and renamed Gerrard and King and this, in combination with the integration on the stock brokers' back offices, will achieve annualised cost savings of pounds 5m.

Gerrard & National's derivatives broker, GNI, the largest firm on the floor of Liffe, will retain its identity and Mr Davies ruled out job losses, despite slim profit margins in futures trading.

The terms of the merger comprises 17 Gerrard & National ordinary shares for 25 King & Shaxson shares. The deal will give Gerrard & National shareholders a 62.7 per cent stake in the merged business and King & Shaxson's investors a 37.3 per cent shareholding.

The merger accompanied Gerrard & National's interim results, which showed that pre-tax profits had slumped from pounds 12.1m to pounds 6.3m. Shares in Gerrard & National fell to a low for the year of 272p, down 27p. King & Shaxson's shares hit a new high with a 20p rise to 182.5p.

Gerrard & National said its results were hit by the introduction of gilt repos, reduced volatility in foreign exchange and fixed-income markets and narrower margins on Liffe.

VIDEO
News
people
Life & Style
The new low cost smartphone of Motorola, 'Motorola Moto G', is displayed in Sao Paulo, Brazil on November 13, 2013. The smartphone, with dimensions 65.9mm W x 129.9mm H x 6.0 - 11.6mm D is equipped with a Qualcomm Snapdragon 400 with quad-core 1,2 GHz CPU, a 4.5-inch display and Android Operating System 4.3 and a suggested price of $ 179 USD.
techData assessing smartphones has revealed tens of millions of phones are at risk of being harvested
Arts & Entertainment
Jessica Pare as Megan Draper and Jon Hamm as the troubled, melancholy Don Draper
tvAnd six other questions we hope Mad Men series seven will answer
Arts & Entertainment
Cody and Paul Walker pictured in 2003.
film
News
David Beckham is planning to build a stadium in Miami’s port for a new football team he will own
news... in his fight for a football stadium in Miami's port area
Have you tried new the Independent Digital Edition iPad app?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Data Analyst - Financial services, Client data, LEI

£40000 - £50000 per annum + BONUS + BENEFITS: Harrington Starr: A leading, Cit...

Management Consultancy - Operational Research Analysts

£35000 - £50000 per annum + Bonus + Benefits: Pro-Recruitment Group: You must ...

Corporate Actions Consultant - Market data, ISO15022, presales

£45000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: Corporate Acti...

Prudential Risk/Operational Risk Associate - London

£350 - £400 per day: Harrington Starr: An opportunity has arisen at a FCA regu...

Day In a Page

Homelessness: Why is the supported lodgings lifeline under threat?

Why is the supported lodgings lifeline under threat?

Zubairi Sentongo swapped poverty in Uganda for homelessness in Britain. But a YMCA scheme connected him with a couple offering warmth and shelter
A History of the First World War in 100 Moments: When the world’s biggest shed took over Regent’s Park

A History of the First World War in 100 Moments

When the world’s biggest shed took over Regent’s Park
The pain of IVF

The pain of IVF

As an Italian woman vows to keep the babies from someone else’s eggs, Julian Baggini ponders how the reality of childbirth is often messier than the natural ideal
Supersize art

Is big better? Britain's latest super-sized art

The Kelpies are the latest addition to a growing army of giant sculptures. But naysayers are asking what a pair of gigantic horse heads tells us about Falkirk?
James Dean: Back on the big screen

James Dean: Back on the big screen

As 'Rebel without a Cause' is re-released, Geoffrey Macnab reveals how its star perfected his moody act
Catch-22: How the cult classic was adapted for the stage

How a cult classic was adapted for the stage

More than half a century after it was published 'Catch-22' will make its British stage debut next week
10 best activity books for children

10 best activity books for children

Keep little ones busy this bank holiday with one of these creative, educational and fun books
Arsenal 3 West Ham United 1: Five things we learnt from the battle between the London sides

Five things we learnt from Arsenal's win over West Ham

Arsenal still in driving seat for Champions League spot and Carroll can make late charge into England’s World Cup squad
Copa del Rey final: Barcelona are paying for their complacency and not even victory over Real Madrid will put things right

Pete Jenson on the Copa del Rey final

Barcelona are paying for their complacency and not even victory over Real Madrid will put things right
Rafa to reign? Ten issues clay courts will serve up this season

Rafa to reign? Ten issues clay courts will serve up this season

With the tennis circus now rolling on to the slowest surface, Paul Newman highlights who'll be making the headlines – and why
Exclusive: NHS faces financial disaster in 2015 as politicians urged to find radical solution

NHS faces financial disaster in 2015

Politicians urged to find radical solution
Ukraine crisis: How spontaneous are the pro-Russian protests breaking out in Ukraine’s east?

Ukraine crisis

How spontaneous are the pro-Russian protests breaking out in Ukraine’s east?
A History of the First World War in 100 moments: The first execution at the Tower of London for 167 years

The first execution at the Tower of London for 167 years

A history of the First World War in 100 moments
Fires could turn Amazon rainforest into a desert as human activity and climate change threaten ‘lungs of the world’, says study

New threat to the Amazon rainforest:

Fires that scorch the ‘lungs of the Earth’
Liverpool, Chelsea and Manchester City: And the winner of this season’s Premier League title will be...

Who’s in box seat now? The winner of the title will be ...

Who is in best shape to take the Premier League prize?