The Rothschild banking dynasty is to consolidate its French and British operations in a bid to ensure long-term family control.
In a statement, Paris Orleans, the holding company of the Rothschild Group, said the shareholdings of the French and English sides of the family will be merged together into a single company, listed in Paris.
The move will “foster increased operational efficiency”, as well as help it to meet stricter regulatory requirements.
Under the plans, Paris Orleans will be converted into a French limited partnership, a move that will “ensure the commitment and control of the Rothschild family over the long term”, said the company.
After becoming a limited partnership, Paris Orleans will be managed by PO Gestion – of which the Rothschilds will own all shares. The family, “via its various branches acting in concert”, will also remain the biggest shareholder in Paris Orleans.
Family member Baron David de Rothschild, who will be chairman of PO Gestion, added: ”[The reorganisation] will allow the group to meet better the requirements of globalisation in general and in our competitive environment in particular, while ensuring my family’s control of the group over the long-term.”
As part of the plan, all shares of Rothschild & Cie Banque, the holding company for the Rothschild Group’s French business, and Financiere Rabelais would be brought together under Paris Orleans.
Almost all of the shares of Rothschild Continuation Holdings, the holding company for much of Rothschild Group’s other operations, including UK-based NM Rothschild & Sons, would also be transferred to Paris Orleans.
An extraordinary general meeting of shareholders will take place in June to approve the changes, while minority shareholders will be given an opportunity to sell their shares under a buy-out deal.
The company called the family, descendants of Mayer Amschel Rothschild, who founded a banking business in 18th century Frankfurt, a cornerstone of the “group’s culture and competitive positioning” in the statement.
Mayer’s son James established a bank in Paris in 1812, while his other son Nathan founded the family’s British operations.
The Rothschild Group includes the interests of some of both the French and British sides of the family – it includes David and Edouard and their families, and Eric and Robert and their families from France, as well as the Jessica, Anthony and David and their families from the UK.
Read the next issue of CampdenFB for an exclusive interview with Baron David de Rothschild.