In a significant move that paves the way for the privatization of Rothschild & Co, Concordia has successfully acquired all of the permitted shares of the renowned investment bank. The acquisition comes as the Rothschild family’s holding company, the driving force behind the bank’s privatization plan, seeks to gain full control over its operations.
Concordia secured a substantial stake by purchasing 8.18 million shares of Rothschild at a price of 46.60 euros per share. This acquisition not only reinforces Concordia’s position in the financial sector but also strengthens the Rothschild family’s ability to shape the bank’s future direction as a private entity.
While the deal marks a significant step forward, the offer to delist the bank from public trading will only be made once it receives approval from the French market regulator, Autorité des marchés financiers (AMF). The Rothschild family remains optimistic about obtaining the necessary regulatory consent to move forward with their privatization plans.
The decision to privatize Rothschild & Co was first announced by the Rothschild family in February, with the aim of gaining greater flexibility and control over the bank’s operations. Privatization would enable the family to make strategic decisions that align with their long-term vision for the institution and adapt swiftly to the changing landscape of the financial industry.
The move towards privatization comes at a time when Rothschild faces challenges in the market. In May, the bank reported a 10% decline in sales for the first quarter, primarily attributed to the global slowdown in mergers and acquisitions activity, which hit its lowest level in over a decade. During the first three months of 2023, the bank’s total group revenue dropped to 606.2 million euros ($667.30 million), down from 675.3 million euros in the same period the previous year.
Despite these challenges, the Rothschild family’s move to acquire full ownership of the bank reflects their unwavering confidence in its potential for growth and resilience in the face of market fluctuations. By taking Rothschild private, the family aims to streamline decision-making processes and implement agile strategies to navigate the evolving financial landscape successfully.