RBS sells Hoare Govett for ‘nominal sum’ in restructure

The Royal Bank of Scotland Group has announced today that it will sell its RBS Hoare Govett corporate broking operations and transfer certain other professionals to Jefferies International Limited for a “nominal cash consideration”.

On 12 January 2012, RBS announced its decision to exit its cash equities, corporate broking, equity capital markets, and mergers and acquisitions businesses as part of changes to the bank’s wholesale banking operations.

As part of this drive, the bank today (2 February) announced on the London Stock Exchange that it has agreed to sell Hoare Govett and transfer certain other cash equities professionals to US investment bank Jefferies for a nominal sum.

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The sale is expected to complete by the end of Q1 2012 and is not subject to any regulatory or other conditions.

RBS said it will work closely with Jefferies and existing clients of the UK corporate broking business in seeking to transfer existing corporate broking roles to Jefferies to the satisfaction of its clients.

In addition, RBS remains in “active discussions” with other third parties interested in acquiring various parts of the businesses it has identified for exit.

Bruce Van Saun, RBS group finance director, said: “As we progress our plans to restructure the group’s wholesale banking division, we are pleased to have reached this agreement with Jefferies. The transaction will ensure continuity of service to our corporate broking clients”.