Brewin Dolphin is in ‘exclusive’ talks with Investec over a possible €60 million (£52 million) takeover of the South African group’s Irish stockbroking business, the company has announced.
Brewin has been active in the Republic since 2011, when it purchased Tilman Asset Management in a £31 million deal, gaining £807 million in client assets, 70% of which were discretionary funds’
In a statement at the time, Brewin said it saw a major growth opportunity given strong demand in Ireland for independent private client investment management services.
Irish stockbroking has been subject to the same pressures that have seen a swift consolidation in smaller UK brokerages in recent years, with the launch of Mifid II rules last year adding to their challenges.
Investec had been active in Irish brokerage since 2012, when it purchased local player NCB for €32 million.
Brewin Dolphin’s last significant acquisition was its 2016 purchase of Duncan Lawrie for £28 million, adding £735 million in client assets.
In a January update, the company reported assets under management 7.7% lower at £39.5 billion in the fourth quarter, as global stock markets sold off aggressively. that compared to a 10.4% slump in the FTSE 100 over the same period
The company was still able to report positive net discretionary flows of £500 million, however. The group’s managed portfolio service reported net inflows of £200 million, or an annual growth rate of 26.7%.