Chinese €155m takeover of Goodbody gets Central Bank approval
Terms of deal unaffected by coronavirus crisis
Roy Barrett: “This deal will represent a strong outcome for the Goodbody business”
The Central Bank has approved Bank of China’s planned takeover €155 million takeover of Goodbody Stockbrokers, putting the deal on track for completion in the coming months, according to sources.
The financial terms of the deal remain as agreed when the planned transaction was announced late last year, sources said. That’s despite an expected impact on commissions and fees as the stockbroking and wealth management business are hit by the economic crisis caused by Covid-19.
The deal remains subject to approval from authorities in Beijing and Goodbody Stockbrokers managing director Roy Barrett told staff in a email on Wednesday, seen by The Irish Times. The email says state-owned Bank of China is “fully committed” to the partnership.
“This deal will represent a strong outcome for the Goodbody business, our clients and our staff and it will give us the backing of a strong parent, which is fully committed to investing in and growing our business,” Mr Barrett said.
“At this time, that support is now more important than ever and will be a huge differentiator for us in how we can serve our corporate, institutional, wealth management and intermediary clients.”
Mr Barrett added: “The level and quality of the interaction between us in recent months has been very positive and augurs well for the future. So as you understand, the transaction is still subject to other regulatory approvals and is expected to complete in early summer, but this is a critical step in the journey.”
A spokesman for Goodbody declined to comment.
Bank of China agreed last November to buy Goodbody, in which Kerry-based financial services group Fexco has a 51 per cent stake, in a deal worth €155 million.
Management and staff at Goodbody own 49 per cent of the business and will get half of their consideration when the transaction is completed, expected to be in the second quarter of this year, with the remainder due within three years.