Cenkos and finnCap, Investment Banks, to Merge in a Share-Based Agreement.

Cenkos Securities and finnCap Group, both companies listed in London as brokers, are currently in serious discussions for an all-share agreement to come together and establish the most prominent designated investment bank for small-cap growth corporations within the City.

According to a report from Sky News, Cenkos and finnCap are in the final stages of negotiations to merge their businesses.

It is probable that a joint statement from the two corporations will be made early on Thursday.

If verified, this would speed up the merging process of smaller brokering companies in London amidst a tough time for investment market experts.

There have been very few instances of companies going public in the City in the past year due to the instability and unpredictability of the economy and market.

The melding of Cenkos and finnCap will occur several months subsequent to the withdrawal of Panmure Gordon's bid for finnCap. Panmure Gordon, an investment bank possessed by an entity supervised by Bob Diamond, the previous Barclays leader, chose not to proceed with their offer.

The two parties couldn't come up with a consensus regarding the cost.

Sources within the city have reported that finnCap will acquire Cenkos in a new deal.

Both companies have almost the same value in the stock market, with a market capitalization of £21m and £22m, respectively.

Additional information about the agreement, such as who will lead the merged company and what brand it will adopt, were not evident.

Even though the firms' valuations are not very high, the agreement will be closely monitored by both colleagues and customers in the financial industry.

Brokers are searching for ways to save more money due to the decline in corporate activity. The economic environment has made it less probable for there to be an increase in corporate activity this year.

FinnCap went through a challenging phase when it had to bid farewell to its CEO, Sam Smith, who was among the few female bosses in the City, in the previous summer.

It is predicted that additional brokerage firms will join in the merging of the industry. One of these firms is WH Ireland, which is currently being targeted by an activist investor.

A representative from finnCap chose not to provide any remarks, while it was not possible to get in touch with Cenkos.