The Rothschild family will unite into a single company its French and U.K. banking interests in order to have more control over the assets.
Bloomberg reported that the decision is part of a move to unite the two branches of the Rothschild family, begun when Evelyn de Rothschild retired in 2004, and David de Rothschild, a cousin and a French citizen, took managerial control of the U.K. side of the bank.
Rothschild & Cie Banque holds French assets of the family, including its Paris-based mergers and acquisitions bank. Rothschilds Continuation Holdings has the London-based N.M. Rothschild & Sons bank, as well as other assets. The two companies will be combined under a French-traded company, Paris Orleans et Cie.
Paris Orleans will also change its legal structure and become a limited partnership, which will provide more control to the family. In a statement, David de Rothschild, who oversees the whole firm, said, “This will enable us to address the requirements of a globalized and competitive world while securing control of the family over the group.”
Paris Orleans will be controlled by PO Gestion, a company that is wholly owned by the family. David de Rothschild will be the chairman of PO Gestion, and Nigel Higgins, CEO of Rothschilds Continuation, and Olivier Pecoux, CEO of Paris Orleans (PAOR), will become co-heads.
Shareholder approval from Paris Orleans’s minority shareholders will be sought for the move at a June meeting. Currently, Paris Orleans directly and indirectly owns 45% of Rothschild & Cie and controls about 53% of Rothschilds Continuation.