Southern Cross Equities, Bell Potter to merge
Bell Financial Group (ASX:BFG) intends to merge its Southern Cross Equities unit and Bell Potter stockbroking business into a full-service independent stockbroker to boost revenue.
The company today said it plans to integrate the two businesses into a single brand from July 1, 2011.
Executive chairman Colin Bell said "There is a clear gap in the market for an independent full-service Australian stockbroking firm and we intend to fill that gap."
BFG's board said the revenue synergies from combining them into one under the BFG brand were "compelling".
The two businesses would co-locate as they integrated over the next seven months, he said.
"Over the next seven months, we will execute an integration plan that will see a continuity of both businesses," said Mr Bell.
"Alongside the Bell Potter division heads, Southern Cross executives will take up key management roles in the new single broking firm and we are delighted that Southern Cross staff are committed and excited about our future plans."
Brian Wilson, former managing director of Lazard's Australian operations and non-executive director of BFG, will oversee the integration process and Southern Cross Equities founder Brent Potts will remain a BFG non-executive director.
By 1246 AEDT, BFG shares lifted 0.5 cents to 92.5 cents.