Auction houses merge

Phillips handles paintings by the likes of Van Gogh

Phillips' auction house has confirmed plans to merge its UK operations with those of rival firm Bonhams & Brooks.

The move will create a third force in the UK auction house market to rival Sotheby's and Christies.

Under the deal, Phillips' Bond Street and Bayswater auction rooms in London, as well as its extensive regional network, will come together under the Bonhams name.

Phillips, which became known as Phillips de Pury & Luxembourg after a merger this year, said it would continue to focus on the high end of the auction market through offices in New York and Grosvenor Street, London.

'Competitive force'

Phillips and Bonhams, which were founded in the 1790s, said the merger would create "an exciting new competitive force in the UK auction market".

The new group will have combined annual sales of £150m.

Christopher Thomson, chief executive of Phillips UK, added: "This is the ideal opportunity for Phillips to consolidate its position in the UK and Bonhams & Brooks is exactly the right partner."

Phillips is owned by French billionaire Bernard Arnault's luxury goods company LVMH.

He vowed to create a rival to Sotheby's and Christie's when he bought Phillips in 1999.

High value

LVMH will hold slightly less than a 50% stake in the joint venture, while Bonhams will have the majority holding and will place its current chairman, Robert Brooks, at the helm of the new company.

The merger should enable Phillips to concentrate on the high value end of the market in impressionist and modern art, contemporary art, old masters, jewellery and watches.

Chairman Simon de Pury added: "This move enables Phillips, de Pury & Luxembourg to focus on the high end of the market in its chosen areas of specialisation.

"The merger of the UK operations with those of Bonhams & Brooks serves to enhance their market position."