RBS offloads Hoare Govett to Jefferies

ROYAL Bank of Scotland yesterday confirmed the sale of its Hoare Govett stockbroking arm to US investment bank Jefferies.

It said the deal was for a “nominal cash consideration” and is expected to complete by the end of the current quarter, as it is not subject to regulation.

The agreement prevents the closure of the venerable brand, which was put on the chopping block by RBS as part of the overhaul of its investment banking operations. The bank did not give details of what the sale will mean for the business’ 125 staff.

Sources have previously told The Scotsman that the deal was likely to lead to the loss of as many as 75 jobs.

Hoare Govett came under RBS’s ownership following the disastrous takeover of Dutch bank ABN Amro in 2007. Its clients include a number of well-known mid-sized firms and some FTSE 100 companies.