Monday, 21 April 2008

Lehman to end Russian joint venture

Financial News

Jason Corcoran in Moscow

21 April 2008

US investment bank Lehman Brothers is phasing out its M&A advisory joint venture with Russia’s Renaissance Capital as it builds its presence in Moscow. The move comes just weeks after bank Royal Bank of Scotland announced the end of its derivatives joint venture with the Russian group.

Lehman, which re-entered the Russian market last year, anticipates being up to scale by September when it moves into its new offices in the emerging business district of Moscow City.

A source close to the bank said: “The arrangement is being phased out. As we build out our own M&A capabilities in Russia, the need for that is diminished as we become more like competitors rather than joint venture partners.”

The tie-up had seen the two banks co-operate on a number of deals in the natural resources sector over the past few years.

Nick Jordan, who is leading the investment banking business for Lehman in Moscow, previously advised energy group Gazprom and other blue chips on some of their biggest acquisitions.

Renaissance founder Stephen Jennings last year said the arrival of Jordan from Deutsche Bank would not threaten its agreement with Lehman.

Renaissance was unavailable for comment.

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