SINGAPORE (June 29): Phillip Securities is taking over RHB Securities Singapore, as the local stockbroking industry goes through another round of consolidation.
The acquisition will improve Phillip Securities’ competitive position and distribution scale in Singapore and Asia, and accelerate its ambition to be Singapore’s leading retail financial service provider, said the leading Singapore brokerage in a statement.
“We have long respected RHB Securities Singapore,” said Luke Lim, managing director of Phillip Securities. “As fellow advocates for investors, both companies have a combined wealth of experience that span more than 70 years,” he said.
Phillip Securities celebrates its 45th anniversary this year while RHB Singapore can trace its roots to 1987.
“We believe that our acquisition of RHB Securities Singapore’s stock broking businesses, specifically new clients and a team of experienced dealers and trading representatives, will strengthen PhillipCapital’s position as an integrated financial house,” said Lim.
“We look forward to working closely with RHBSS to ensure a seamless integration,” he added.
As the transaction covers only the stock-broking business, the exact number of RHB Securities Singapore’s remisiers and dealers moving to Phillip Securities will not be known until the deal is completed. Phillip Securities has around 550 trading representatives now.
As part of the deal, RHB Group will do an internal transfer of its capital markets businesses that is now under RHB Securities Singapore to RHB Bank, Singapore. That means existing RHB staff in client coverage, research and corporate advisory services, equity capital markets and institutional equities sales are not part of the transaction.
The proposed transaction is subject to the approvals of the relevant regulatory authorities, and is expected to be completed in the third quarter of 2020.
Talks between both parties for this deal were reported by The Edge Singapore on June 3.
