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Old Mutual pays £70m to take over CCM

Old Mutual is to buy private-client stockbroker Capel-Cure Myers in a deal believed to be worth £70m.

Last week, Money Marketing revealed that South Africa-based Old Mutual was in exclusive negotiations to buy CCM, which has £5bn in funds under management.

CCM has been up for sale since August after a deal between its Canadian owners CIG and ABN Amro collapsed.

Old Mutual says it has no plans to merge the businesses although there will be joint marketing initiatives.

CCM chief executive Mike Jones says there will be no redundancies.

The deal brings Old Mutual&#39s total funds under management outside South Africa to £10.3bn.

Jones says: "We will continue trading as Capel-Cure Myers as part of the Old Mutual group."

Old Mutual managing director Garth Griffin says the deal will "bring added focus to our penetration of the upper end of the retail investment market in the UK and elsewhere".

Old Mutual will not disclose the sale price.

But UBS analyst Martin Cross says: "CCM has been up for sale for £50m-£100m for two to three years. It does not look expensive."

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