Premier Miton Group PLC (AIM:PMI), the London-based asset management company, said it has approached the board of River and Mercantile Group (LSE:RIV) about a potential takeover.
Later, AssetCo (AIM:ASTO) PLC also said it had made an approach for R&M.
Both said an acquisition would be conditional on the completion of the sale of R&M’s solutions business to Schroders, which was agreed for £230mln last month.
Premier Miton, which has a market valuation of almost £300m, said it believes the scale and synergy benefits arising from a combination with £266mln R&M would “drive value accretion” for both sets of shareholders.
The company also said that the scale and cultural alignment between the respective businesses would deliver a “balanced and resilient business across a diversified product offering”.
AssetCo, meanwhile, already owns a 5.85% stake in R&M and said it believes adding R&M “would create significant value for the combined group's clients, portfolio managers, employees and shareholders”.
Both potential suitors said they have made an approach but not yet tabled an offer.