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AssetCo and Premier Miton launch bids for River and Mercantile

AssetCo and Premier Miton launch bids for River and Mercantile

River and Mercantile has received two takeover bids from AssetCo and Premier Miton, its board has confirmed. 

Both approaches are conditional on the completed sale of the firm’s solutions business, which was sold to Schroders for £230m last month.

River and Mercantile said the board reaffirms "unanimously" that the sale continues to be recommended to shareholders.

In a separate statement this morning, Premier Miton said the scale and “synergy” benefits from a merger would drive value for both sets of shareholders.

It said the firm had been assessing the merits of a combination with River and Mercantile for a period of time.

"[We believe] the scale and cultural alignment between the respective businesses would deliver a balanced and resilient business across a diversified product offering, enabling employees of the combined businesses to maximise their potential.”

Premier Miton is the result of a merger itself, between Premier Asset Management and Miton Group in 2019.

Meanwhile, in a similar statement released this morning, AssetCo said its directors believed the two firms were “highly complementary” and a combination of the two would create “significant value” for the group’s clients, portfolio managers, employees and shareholders.

“The AssetCo directors also believe that there is material value in leveraging other elements of the AssetCo business and strategy to increase the value of RMG Asset Management and widen investor appeal," it added.

AssetCo, which is chaired by Martin Gilbert, said in March that it was looking to make “strategic acquisitions” and develop the business through M&A.

In June, the firm collected £30.9m to fund this strategy.

Gilbert is also deputy chairman of River and Mercantile, but has recused himself from the board while discussions of a takeover take place. The company currently owns 5.85 per cent of River and Mercantile.

AssetCo and Premier Miton have until December 21 to confirm their takeover offers.

sally.hickey@ft.com