Deutsche Bank's £410m Numis Takeover Signals Major UK Dealmaking Push

Deutsche Bank's £410m Numis takeover marks a significant move in the UK investment banking sector. With 155 dealmakers, Deutsche Numis aims to disrupt the London league tables.

Deutsche Bank has made a significant move in the UK investment banking sector by finalizing its £410m acquisition of leading City broker, Numis. This acquisition gives birth to 'Deutsche Numis', a formidable entity comprising 155 dealmakers who will focus their efforts on the UK market. With the balance sheet of a bulge bracket bank at its disposal, Deutsche Numis is poised to disrupt the investment banking league tables in London.

Deutsche Bank's £410m Numis Takeover Signals Major UK Dealmaking Push | ogusyis

This strategic maneuver places Deutsche Bank in a prime position to make waves in investment banking, following a three-year overhaul during which it aimed to reduce its workforce by 18,000 employees. In a bid to bolster its operations, the bank has already secured the services of 50 senior dealmakers, capitalizing on the demise of Credit Suisse.

By acquiring Numis, Deutsche Bank not only strengthens its investment bankingcapabilities but also fortifies its equity capital markets unit. Furthermore, the German banking giant hopes to empower Numis in enhancing its corporate finance unit, moving beyond its traditional strengths in corporate broking and ECM. This collaboration solidifies the intent to secure a larger market share in the UK investment banking fee pool, which typically accounts for 25-30% of European revenue.

In its quest to become a leading European investment bank in the region, Deutsche Bank sees the acquisition of Numis as a decisive step towards breaking into the top six and displacing Barclays. As of now, Deutsche Bank sits at the 12th position in the Emea rankings, according to data provider Dealogic.

While successful integration is crucial for this takeover, Deutsche Bank is committed to retaining Numis employees. It is widely known that mergers and acquisitions in the investment banking industry often result in talent leaving the organization. Being the largest City broker, Numis may be small in comparison to Deutsche Bank, and ensuring the preservation of its culture will require some effort.

In a move to minimize staff disruption, Deutsche Bank's UK investment banking team will relocate to Numis's office on Gresham Street. This relocation signifies the German lender's commitment to a smooth transition for all parties involved. The presence in corporate broking is deemed critical in the UK, as nearly all M&A transactions (95%) and ECM deals (100%) in the country are entrusted to corporate brokers.

In conclusion, Deutsche Bank's acquisition of Numis marks a turning point in the UK investment banking landscape. With Deutsche Numis at the forefront, armed with a robust team of dealmakers, the bank is poised to challenge the status quo and secure a larger stake in the M&A fee pool. The successful integration of Numis is vital, not only for expansion in the UK market but also for Deutsche Bank's aspirations of becoming a top European investment bank.