(Corrects history in last paragraph)

by Mathieu Rosemain

PARIS (Reuters) – Ariane de Rothschild on Tuesday described speculation about a merger between Edmond de Rothschild, the Geneva private bank she heads, and the Paris-based investment bank Rothschild & Co as a “fantasy”, saying that ‘such an operation would create little value.

The two Rothschild groups are controlled by different branches of the family banking dynasty that dates back to the 18th century in Frankfurt, Germany.

French bank Rothschild & Co’s recent expansion into the private banking and asset management sectors has heightened speculation among analysts that a merger with the Swiss bank led by Ariane de Rothschild would make strategic sense since that the two groups have the same name while being increasingly in direct competition.

“I think there is a fantasy of merging these two banks,” Ariane de Rothschild said in an interview with Reuters.

“We are still two very, very different banks today. Rothschild & Co with an activity mainly in M&A and indeed which enters in a very active, dynamic and very good way in private banking and ‘asset management’. And we, our core business is private banking and asset management.

“The two banks are doing perfectly well each in their field. And there is no reason for there to be a merger. A merger is interesting when you also have a real creation of value. I am not sure that there will be has major value creation for this type of merger,” she added.

Rothschild & Co declined to comment.

Ariane de Rothschild, widow of Benjamin de Rothschild, son of the founder of the Swiss bank who died suddenly in 2021 at the age of 57, has been the general director of the Geneva establishment since last year.

(Corrects history in last paragraph)

(Reporting Mathieu Rosemain, written by Tommy Reggiori Wilkes, Blandine Hénault for the , edited by Bertrand Boucey)

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