Deutsche sweeps on Numis in £410m deal to strengthen City presence

Shares in Numis soared on the deal

The German banking giant said it would be able to offer better service to global UK-based customers following the deal. (Kirsty O’Connor/PA) (PA Archive)

Deutsche Bank hopes to set itself up as an even bigger player in the City of London as it agreed a £410 million deal for fellow investment bank Numis.

The two companies said that the 350p-per-share takeover would give Numis shareholders a nice payout, with the price 72% above Thursday’s closing price for the business.

Shares in Numis soared, although to 341p, below the offer price.

The deal would see Deutsche’s UK operations combine with those of its smaller rival, creating what it said would be “a leading force in UK investment banking”.

Numis’s clients would benefit from some of the services that Deutsche offers but its smaller rival does not, the company said.

Meanwhile Deutsche will benefit by being able to better serve UK clients with a global reach.

The Numis board backed the deal and directors said they would sell the 4.4% of Numis shares they own to Deutsche.

The business has also been given the thumbs up by the world’s richest Dane, Anders Holch Povlsen, who owns 22.8% of Numis, making him its biggest shareholder.

Mr Povlsen is also a major investor in Asos and is one of the biggest landowners in the UK.

Deutsche Bank’s head of corporate bank and investment bank Fabrizio Campelli said: “We have been evaluating how to accelerate the growth of our business in the UK and, as a leading UK franchise with a long history of successfully delivering superior client service and growth, Numis represents a compelling strategic fit.

“The combination enables us to realise greater revenue opportunities across our shared client base and to deepen our engagement with UK corporates.

“There is strong and complementary cultural alignment between Deutsche Bank and Numis that will propel the combined business to deliver exceptional client service, and we look forward to welcoming Numis management and employees to the Deutsche Bank Group.”