In a statement released by Smith and Williamson, it confirmed due to the “impact of the Covid-19 pandemic and the ongoing discussions with the Financial Conduct Authority (FCA) regarding the transaction structure, the proposed merger between Tilney and Smith & Williamson will be delayed”.
In September last year, the two companies reached agreement to combine their respective businesses.
The merged business will be an integrated wealth management and professional services group, offering an “unrivalled breadth of value-added services focusing on private clients, businesses and charities”.
The combination of Tilney and Smith and Williamson brings together two of the UK’s longest established wealth management and professional services businesses, founded respectively in 1836 and 1881.
David Cobb and Kevin Stopps, co-chief executives of Smith and Williamson, said: “We continue to believe in the compelling strategic rationale of this merger and are pleased to report that significant progress has been made towards revisions to Tilney’s transaction structure that address the points raised by the FCA.
“However, in light of the extraordinary circumstances created by the Covid-19 pandemic, the transaction process has inevitably been delayed. If the parties can agree amendments to the transaction structure that the Smith and Williamson board is able to recommend, we will ask our shareholders to vote on whether the revised transaction should go ahead.”