The Rothschild family is selling a 7.5% stake in its investment bank business to Rabobank of the Netherlands, as they team up to advise clients on food and agricultural deals. The deal, which could be the first step towards a closer alliance, comes as food manufacturers are investing more heavily in agribusinesses to secure raw material supplies. The two banks described the link-up as “a co-operation agreement”. But the deal, costing Rabobank less than £100m, would give Rothschild’s clients access to Rabobank’s deeper financial pockets. Akeel Sachak, Rothschild’s head of consumer banking, said the link-up would let his bank take advantage of Rabobank’s close ties with Chinese, Indian and South Korean agricultural producers. Rabobank is acquiring the stake in Rothschild Continuation Holdings, one of several holding companies controlled by the family.
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