Broking firm Merrill Lynch is to leave New Zealand but will continue servicing clients from Australia.
The firm will close its New Zealand-based institutional equity business by the end of the month, but continue its retail broking business until further notice. Research coverage of New Zealand's leading companieswill continue from Australia.
Merrills hopes to sell its retail broking arm and New Zealand managing principal Matthew Rose said yesterday that talks were continuing. ASB Securities and ABN Amro are believed to be the frontrunners to buy Merrill's retail broking arm but neither will comment.
Mr Rose denied reports that Merrill's 40 to 45 remaining staff were laid off at a meeting this week.
He could not give a time frame on the outcome of the sale talks, saying only that it would be as soon as possible. Most of the firm's New Zealand investment banking team will be re-deployed to Sydney and Melbourne by mid-February.
Merrill Lynch said discussions were continuing about the possible sale of its private client business, a move stemming from the company's realignment of its retail broking operations in Australasia.
The managing director of Australasian equities, Simon Brookhouse, said that while the firm would no longer have a physical presence in New Zealand, it retained a strong commitment to servicing clients here and international clients with New Zealand interests.
"The New Zealand market has a long history of stability and efficiency. We have a strong following of loyal clients with interests in New Zealand, and we intend to maintain the high standard of advice and service to which they are accustomed."
Mr Brookhouse also said Merrill Lynch was keen to retain its membership of the New Zealand Stock Exchange.
"The [New Zealand Stock Exchange] managing director, Bill Foster, fully appreciates our strategy and our continuing commitment to maintaining a strong level of service to the New Zealand market."
Merrill Lynch has offices in 44 countries and total client assets of about $US1.8 trillion ($4.1 trillion).
