Tilney has confirmed that it is in merger talks with rival Smith & Williamson, following reports of a potential tie-up between the two private wealth managers.
Tilney confirmed it is in talks with Smith & Williamson “about a potential combination of our businesses” in a statement this morning.
A merger would create a firm with revenue of nearly £500m and over £45bn of assets under management. Tilney said that such a deal “would create a market-leading, integrated UK wealth management and professional services group”.
“These discussions are ongoing and there can be no certainty that a transaction will proceed. A further announcement will be made as and when appropriate,” the company added.
Smith & Williamson released a statement confirming it “has received an approach and is in exclusive discussions about a combination of its business with Tilney Group”.
“The respective Boards believe that a merger of Smith & Williamson and Tilney has the potential to deliver significant benefits to the clients, employees, partners and shareholders of both businesses,” it added.
Both Tilney and Smith & Williamson currently have strong discretionary investment management businesses. Tilney has a large financial planning arm, while Smith & Williamson is a top ten UK accountancy firm.
Smith & Williamson held unsuccessful merger talks with wealth manager Rathbones. Tilney launched an alternative bid, but Smith & Williamson instead pursued a deal with Rathbones that ultimately collapsed.
Tilney was acquired by private equity firm Permira from Deutsche bank in 2014.