Rothschild agrees link-up with Nomura

The investment banks Rothschild and Nomura have formed an alliance to strengthen their hand in the merger and acquisition advisory business.

The investment banks Rothschild and Nomura have formed an alliance to strengthen their hand in the merger and acquisition advisory business.

The firms will co-operate on cross-border takeover deals between Japan and Europe, allowing them to tap each other's client bases.

The alliance was described as a collaboration agreement and does not include any exchange of capital or the allocation of staff in joint offices. Rothschild, one of the oldest City banks, was ranked No 1 in European M&A by Thomson Financial last year, based on the value of announced deals. Its ranking was lifted by its involvement in the Sanofi-Aventis deal, worth $63bn (£33bn).

In the UK, the family-owned firm led by Baron David de Rothschild is less high profile than it was in the 1980s when it was close to the Conservative government and advised on a number of big privatisations, such as gas and electricity. Last year, Rothschild abandoned commodities trading and its centuries-old connection with the gold market.

Rothschild and Nomura, Japan's largest securities firm, are trying to raise their global profile and narrow the gap with their global peers, such as UBSand Goldman Sachs, which are active players in Japan.

A spokesman for Rothschild said there had not been much deal flow between Japan and Europe in the past couple of years. However, there are signs that deal activity is starting to pick up as the Japanese economy improves and Japanese companies' appetite for investment abroad revives.

A committee of eight bankers will oversee the alliance. The four drawn from Rothschild are its vice-chairman Simon Linnett, general partner Lionel Zinsou, and the directors Greg Shenkman and Andrew Rickards. Nomura will be represented by the head of its international arm, Hiromi Yamaji, the global head of investment banking, Noriyuki Ushiyama, the European head of investment banking, Hideaki Sunaga, and the global head of M&A advisory, Mr Kimura.