Panmure Liberum? Two City brokers ‘set to merge’ into new investment bank led by Rich Ricci

TWO of the City’s leading brokers are set to merge, according to reports late last night.

Panmure Gordon and Liberum are set to merge as Panmure Liberum, with former Barclays chief and now Panmure chief exec Rich Ricci set to lead the new, combined investment bank, according to a report by Sky News’ Mark Kleinman. 

The deal could be announced as soon as this morning.

The City has been gripped with talk of consolidations between the Square Mile’s brokers, with Finncap and Cenkos consummating their own tie-up in September as the newly formed Cavendish. Deutsche Bank also bought Numis, in a surprise move which strengthened the German outfit’s presence in the Square Mile.

Investment banks have been hit hard by the significant slowdown in London equity markets and the sharp spike in interest rates.

It is understood Panmure and Liberum have been in talks for months, with initial reports in the Sunday Times.

Neither of the two privately-owned firms responded to requests for comment from Sky News last night.

Analysts said at the turn of the year that consolidation was highly likely.

“Competition [for clients] is not a bad thing, but it’s going to be brutally competitive right now. It’s hard work to win mandates and win deals,” says Neil Shah, head of research, at investment analysis firm Edison.

“It feels like there’s too much capacity out there. I do see the possibility of more M&A activity, more consolidation in the space.”