Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

UPDATE 1-Lazard restructures in Australia amid M&A sector shake-up

Published 05/02/2021, 04:27 pm
Updated 05/02/2021, 04:30 pm
© Reuters.

(Adds M&A rankings, revenue for 2020)

By Paulina Duran

SYDNEY, Feb 5 (Reuters) - Investment bank Lazard Ltd LAZ.N said on Friday it is reorganising its Australia operations, retaining its asset management arm in the country in-house but handing over mergers and acquisitions advisory services to a new, "affiliated" firm.

A person with direct knowledge of the situation said a number of redundancies were announced at the firm on Thursday, without disclosing how many jobs were affected. The person spoke on condition of anonymity because the details were private.

A Lazard spokeswoman said in an emailed statement that the new advisory firm in Australia will retain an "affiliation" with Lazard and be headed by Melbourne-based Andrew Leyden, a seasoned infrastructure and energy banker who currently heads the firm in the country.

The move comes amid a shake-up in the investment banking market in Australia, with South Africa's Investec INLJ.J announcing plans to exit from the country in December, while newcomers such Barrenjoey -backed by Barclays Plc BARC.L - and local firm Jarden, raid competitors for talent.

M&A advisory revenue in Australia tumbled 50% in 2020 to $1.24 billion, according to Refinitiv data, as activity plummeted with the coronavirus pandemic disrupting economies and hurting business confidence around the world.

Bankers, however, expect a rebound in 2021, driven by a global economic recovery, ultra-low interest rates and quantitative easing from central banks.

Lazard, "regularly reviews our global footprint; assessing local office productivity and potential for future growth," the spokeswoman added. There would be "no impact on Lazard Asset Management in Australia", she said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"We have good visibility on the Australian financial advisory business and decided this was the right time."

Lazard was 7th in target advisory rankings in Australia for 2020, according to Refinitiv, while Goldman Sachs (NYSE:GS) GS.N topped the same league table.

The firm is currently advising New Zealand's takeover target Tilt Renewables Ltd TLT.NZ and last year acted as defence advisor for wind and solar firm Infigen Energy IFN.AX .

"A core team will continue to work on all current mandates," the spokeswoman added.

The person with direct knowledge of the matter said the new firm was expected to operate in a similar partnership model to Lazard's operations in South Korea, where in 2013 it established a "strategic alliance" instead of a fully owned office.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.