Rothschild’s new partnership with Jardine Matheson is a family affair

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http://www.ft.com/cms/s/0/91c6d982-e382-11d9-b6f0-00000e2511c8.html#axzz3qwocPkxm

When Rothschild appointed Jardine, Matheson & Co to act as its agent in China in 1838, the venerable banking group was relying on one of the few British firms with its roots in Asia to act as its eyes and ears in a beguiling but impenetrable market.

Almost 170 years later, the two firms have renewed their relationship – for very similar reasons.

Jardine’s decision to spend $186m (£102m) on a 20 per cent stake in one of Rothschild’s many holding companies has more than just a financial significance.

By joining forces, the two family-owned firms have once again demonstrated their determination to offer mutual support at a time when global capitalism is dominated by large, publicly traded corporations.

Baron David de Rothschild, head of the bank, says it was important that the minority shareholding be sold to a long-term investor willing to respect the family’s desire to remain independent.

“We would never accept a bank or another institution that would give the impression that this was just a first step towards a sale or an IPO,” he says. “With Jardines, it’s perfectly clear there is not another step.”

The deal was triggered when Royal & Sun Alliance, the insurance group, decided to sell its 21.5 per cent shareholding in Rothschilds Continuation Holdings, the holding company for the investment bank’s London-based arm, NM Rothschild, as well as its operations in North America and Australia.

The investment dates back to the 1970s, when Sun Alliance – as the insurer was then known – took a stake in RCH to help it deal with the death duties that threatened the ownership of many British family businesses.

The insurer had strong links with the Rothschild family: Nathan Mayer Rothschild, one of the bank’s founders, helped set up the Alliance Assurance Company in 1824. Several Rothschild family members had also served on Sun Alliance’s board.

Baron David says the family initially considered buying back the stake. “However, we thought that, culturally, it is healthy and interesting to have an outside shareholder as it forces you to institutionalise the company.”

Over lunch with Henry Keswick, chairman of Jardine Matheson, Baron David discussed the possibility of the Hong Kong-based group buying the stake.

Characteristically décontracté, Baron David says: “I had lunch with Henry Keswick coincidentally at a time RSA had expressed its intention to sell. RSA did not shop around.”

Jardine executives had seen Rothschild’s investment bankers in action during the restructuring in 2002 of Astra, Indonesia’s largest car and motorcycle manufacturer, and had been impressed.

Jardine had recently sold its stake in the Jardine Fleming asset management joint venture and was looking for a relationship with a new financial partner.

“The old association is important but it’s actually the new association that is more important,” says Rodney Leach, a director of Jardine Matheson. “Although the world has changed immeasurably since the 19th century, it’s more than ever the case that Asia is the place to be.”

As part of agreeing the investment, the two sides discussed the possibility of extending Rothschild’s investment banking operations in Asia. The bank is keen to expand in the region and recently forged an alliance with Nomura, the Japanese bank, to work on cross-border mergers acquisitions in Japan.

Baron David says Jardine could help Rothschild extend its private banking operations in Asia and the two could co-operate on private equity investments.

https://en.wikipedia.org/wiki/Jardine_Matheson

Is a conglomerate incorporated in Bermuda, with its primary listing on theLondon Stock Exchange. The majority of its business interests are in Asia, and its subsidiaries include Jardine Pacific,Jardine Motors, Jardine Lloyd Thompson, Hongkong Land, Jardine Strategic, Dairy Farm, Mandarin Oriental Hotel Group, Jardine Cycle & Carriage and Astra International.

Jardines was one of the original Hong Kong trading houses or Hongs that date back to Imperial China, and as of December 2010, 41 percent of the company’s profits are still earned in China. The company is controlled by the Keswick family, who are descendants of co-founder William Jardine’s older sister Jean Johnstone.

With the cession of Hong Kong under the 1842 Treaty of Nanking, the firm set up its headquarters on the island and grew rapidly. Initially trading in smuggled opium, tea and cotton, Jardines soon diversified into other areas including insurance, shipping and railways. By the turn of the 19th century, the company had become the largest of the hongs or foreign trading conglomerates with offices in all the important Chinese cities as well as Yokohama, Japan.

In the early decades of the 20th century, Jardines built cotton mills, a press packing plant and a brewery in Shanghai while expanding into Africa, America and Australia. When war came to China in 1937, the firm suffered heavily both in Hong Kong and in mainland China.

After the 1949 foundation of the People’s Republic of China, trading conditions for foreign companies under the new Communist regime became increasingly difficult.

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old friends..

“The insurer had strong links with the Rothschild family: Nathan Mayer Rothschild, one of the bank’s founders, helped set up the Alliance Assurance Company in 1824. Several Rothschild family members had also served on Sun Alliance’s board.”

who are jardines?

“Is a conglomerate incorporated in Bermuda, with its primary listing on the London Stock Exchange. The majority of its business interests are in Asia, and its subsidiaries include Jardine Pacific,Jardine Motors, Jardine Lloyd Thompson, Hongkong Land, Jardine Strategic, Dairy Farm, Mandarin Oriental Hotel Group, Jardine Cycle & Carriage and Astra International.”

incorporated in bermuda eh? lol?

“As part of agreeing the investment, the two sides discussed the possibility of extending Rothschild’s investment banking operations in Asia.”

ahh asia..the final frontier..

401

~ by seeker401 on November 13, 2015.

5 Responses to “Rothschild’s new partnership with Jardine Matheson is a family affair”

  1. http://screenshotsnews.net/2015/11/10/will-your-presidential-vote-in-2016-even-matter-bilderberg-global-cabal-pre-selects-us-president-again/

  2. Reblogged this on Debatable News: Mainstream to Tinfoil Hat and more.

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    • Wow thanks…

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