- M&A
- February 8, 2023
- 4 minutes read
Rothschild Family Plans $4B Buyout Of Eponymous Investment Bank
The latest billion-dollar acquisition is coming from the banking sector and involves one of the sector’s most prominent dynasties. Concordia,…
The latest billion-dollar acquisition is coming from the banking sector and involves one of the sector’s most prominent dynasties. Concordia, an investment vehicle of the Rothschild Family, has launched a bid to buy out the rest of the shares it doesn’t currently own in Rothschild & Co (EPA: ROTH), a French investment bank.
Concordia and other vehicles of the Rothschilds currently own 54% of Rothschild & Co and the family intends to buy the remaining 46%. Concordia has offered 48 euros ($52) per share, which values the investment bank at €3.7bn ($4bn).
- Rothschild & Co dates back to the 1800s when English-German banker Nathan Mayer Rothschild founded investment bank N M Rothschild & Sons in London. The bank was heavily involved in the bond market and loaned money to the British government and allies during the Napoleonic wars, earning a fortune for its founder. NM Rothschild & Sons merged with another French holding company controlled by the Rothschild family in 2012 to form Rothschild & Co.
- The Rothschild family is a wealthy banking dynasty whose prominence dates to the 1700s. Various members have founded and led major financial corporations up until the 21st century. Current prominent members include Nathaniel Rothschild, Chairman of Volex, a UK-listed electronics manufacturer; Jacob Rothschild, Chairman of RIT Capital Partners, a UK-listed investment trust with a £3bn market value; and Ariane de Rothschild, majority owner of Edmond de Rothschild Group, a Swiss private bank with nearly $200bn of assets under management.
David René de Rothschild led Rothschild & Co through the 2012 merger and, in 2018, handed the Chairman position to his son Alexandre, who became the seventh-generation family member to lead the bank. Under Alexandre, Rothschild & Co has worked to diversify from its French and British operations and expanded in the US and into private equity. Now, it turns out the Rothschild family wants the whole of the bank to themselves.
With about 50% of Rothschild & Co’s voting rights under their control, the family will likely not face hindrances in taking their bank private. The bank’s board announced it had formed a committee to weigh the offer and provide feedback to Concordia, whose €48 per share offer includes a €1.4 dividend and an exceptional distribution of €8.
- Rothschild & Co provides advisory, merchant banking, and asset management services. It reported a net income of €768mn ($825mn) on €2.9bn ($3.1bn) in revenue in its most recent fiscal year.
