IF AT first you don't succeed, try, try again. That appears to be the corporate mantra adopted by the board of Finncap Group, the smallcap broking firm.

This morning, it's expected to announce an all-share merger with Cenkos Securities, its listed rival, in the latest attempt by the City's embattled brokers to get fitter through industry consolidation.

The terms of the deal are hazy, but I understand that the slightly smaller Finncap (in market cap terms at yesterday's closing share price) will acquire Cenkos.

Two of the proverbial drunks propping up the bar? That may be how some competitors label the deal, but at first glance there's strong industrial logic.

The merger will create the leading player in the market for serving smaller growth companies, allow the removal of unnecessary overheads and establish a solid base to lead further dealmaking activity in dire need of it.

I'd expect a positive, if muted, response when the announcement hits the screen today - and don't rule out others getting involved too.

(c) 2023 City A.M., source Newspaper