BMO eyes Euroz Hartleys' capital markets business

Euroz Hartleys confirmed it is in discussions with Canada's BMO Financial Group for a potential sale of its capital markets business for $145 million.

The ASX-listed wealth firm said BMO made the confidential, non-binding and conditional proposal to acquire the business unit for a cash consideration.

The capital markets business provides institutional dealing, research and corporate finance services, catering to companies and institutional clients.

The institutional dealing team provides advice, idea generation, site visits and roadshows focused on resources, mining services and small- to mid-cap Western Australia industrials.

The research team covers ASX-listed industrials, resources and energy companies, while the corporate finance team specialises in equity capital markets, mergers and acquisitions, and corporate advisory.

If the sale goes ahead, Euroz Hartleys' other business line - private wealth services - would remain intact.

This division comprises private wealth advisers who work with high-net-worth individuals, companies and SMSFs, providing services such as stockbroking, superannuation advice, investment management and portfolio administration.

"The proposal is subject to a number of conditions, including entry into a strategic alliance agreement between BMO and the Euroz Hartleys' Private Wealth business to preserve the interconnected relationship between the capital markets and private wealth businesses," Euroz Hartleys said.

BMO has a period of exclusivity until June 30 to conduct due diligence and progress relevant transaction documentation.

The wealth management group confirmed the proposal following the AFR speculating on the transaction overnight.

Euroz Hartleys added the transaction is subject to satisfactory completion of due diligence under a period of exclusivity, negotiation and execution of definitive transaction documentation between the two parties, as well as other customary conditions.

BMO is the eighth largest bank in North America, providing diversified services across personal and commercial banking, wealth management, global markets and investment banking.

In 2022, Columbia Threadneedle Investments acquired BMO Global Asset Management's Australian business.

This was part of a broader move for Columbia Threadneedle in which it acquired the European, Middle Eastern, and African (EMEA) asset management business of BMO Global Asset Management in November 2021.