London Investment Bank Stifel Europe, a subsidiary of Stifel Financial Corp, he agreed to buy a German brokerage bank. The acquisition will enable Enrico to increase its German and Swiss research sector.
According to a statement released by two companies today, the acquisition is under preparation for Brexit, and Britain has decided to leave the European Union in just over four months on March 29, 2019.
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Namely, the press release states: "MainFirst carries a full German bank license, enabling Telford to continue providing corporate advisory, brokerage and investment banking services, and clearing and settling secondary trades and fixed income after Brexit."
The agreement will result in a combination of the German Broker's Investigative Unit Stiff presence on the UK market. This will create a pan-European platform with distribution power and local expertise.
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Transaction includes MainFirst Bank, MainFirst Schweiz and MainFirst Securities US Inc. The agreement does not affect MainFirst Asset Management, which earlier this year was separated from brokerage business.
The acquisition is expected to be completed in Q1 2019
This move is expected to end in the first quarter of next year. Financial data, such as the value of the acquisition, have not been disclosed. However, MainFirst said senior management would remain in their current positions after merger.
Commenting on the acquisition of Eithne O & Leary, President of Stifel Europe, said: "With the emerging European regulatory environment and changing market dynamics, we will continue to deal with strategies that enable us to best serve current and future customers with a wider range of products ".
Preparations for Brexit are underway
As Brexit is rapidly approaching, financial institutions make the final preparations for the division. BaFin, the German financial supervisor, said in August that the country is processing more than 25 bank licenses after Brexit.
Furthermore, financial regulators such as European Securities and Markets Authority (ESMA), Cyprus Securities and Exchange Commission (CySEC) Bafin also warns financial institutions to be ready for the worst scenario, the so-called "hard brexit". This means that companies that want to continue to offer their products and services must have a licensed entity in one of the 28 EU member states.