There’s another acquisition in the broker space – Ord Minnett is buying Baillieu
After over 130 years in business, broker Baillieu found a buyer in industry peer Ord Minnett.
This morning the pair announced the tie up, which is 2020’s second acquisition in this space. Back in June, Euroz (ASX:EZL) paid $30.2 million to snap up fellow WA broker Hartleys.
Baillieu began in 1889 as a partnership and today has nine offices around Australia with its headquarters in Melbourne.
Despite bearing the Baillieu family’s name, the broker has had connection with them since a 1998 restructure.
Ord Minnett has promised the E.L. & C Baillieu name will live on despite the integration.
The private shareholders of Baillieu overwhelmingly voted in favour of the deal.
It comes amidst a boom time for both firms and the broking sector.
Over $40 billion has been raised by ASX companies in 2020 as firms rushed to raise cash for varying reasons. These ranged from staying alive to pouncing on opportunities COVID-19 made possible.
“The transaction will bring together two of Australia’s longest standing stockbroking firms, and provide many exciting opportunities for our clients and staff,” said Baillieu chair Jo Dawson.
“Having received strong interest from the stockbroking community, Ord Minnett were determined to be the perfect fit for our business and I believe that the combination of the two firms will position Baillieu well for the structural changes transforming our industry.”
“Our advisers and staff are looking forward to what will be an exciting time ahead.”
Ord Minnett CEO Karl Morris also said the deal was positive.
“The combination of Baillieu’s brand heritage and history, private stockbroking business, its adviser network, its client-base and operational synergies will cement Ord as a respected Australian wealth brand,” he said.
“The scale benefits and self-clearing of the two businesses will allow us to be leaders in financial advice.
“This new amalgamation can only serve to benefit Australian investors and our clients for many more generations to come.”