Rothschild sells stake to Rabobank
Dutch banking group Rabobank is set to become the first new external shareholder in Rothschild in nearly three years after striking a deal today with the independent investment bank to co-operate on equity capital markets and mergers and acquisitions advisory work in the food and agriculture sectors.
The deal marks Rothschild's first co-operation since the bank ended its equity underwriting joint venture with ABN Amro in December last year.
Rabobank and Rothschild have agreed to “pool their respective industry knowledge, resources and relationships while expanding their respective geographic reach and client base through an enhanced breadth of services”.
The deal will see Rabobank take a 7.5% stake in Rothschild Continuation Holdings, the Rothschild holding company, while Rabobank executive board member Sipko Schat will join its board. Financial details were not disclosed.
Rabobank becomes the first new investor in Rothschild Continuation Holdings since December 2005, when trading group Jardine Matheson bought a 20% stake from Royal & SunAlliance Insurance Group.
The Rabobank stake has been held within Rothschild Continuation Holdings’ treasury since the company bought it back from a previous shareholder several years ago, according to a spokesman for Rothschild.
The co-operation effort will be led by Maarten ter Haar and Emmanuel Durand, heads of food and agriculture M&A for Europe and the Americas at Rabobank, and Akeel Sachak, global head of consumer at Rothschild.
--write to vahuja@efinancialnews.com
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