The French and English sides of everybody's favorite banking dynasty have gone the last mile to kiss and make up. After two centuries of independent ownership, the two Rothschild banking businesses will finally be unified under a single holding company.

Rothschild, a bank best known for its M&A advisory services, took the first steps towards its own consolidation when the two branches merged operationally four years ago. This week's development represents a further integration at the shareholder level.

It usually takes a common foe to persuade French and English factions to join forces, and the Rothschilds' latest move is no different. The family's move to simplify a complicated financial structure and pool assets comes amid a wave of European bank buyouts; the famed financiers may be girding their loins in preparation for battle.

Under the deal, Paris-Orleans, the holding company of the French branch of the family, will pay 446 million euros to their English kinsman in exchange for 100 percent ownership of the centuries-old bank.

Aging patriarch Sir Evelyn stepped down as chairman of the English side in 2003, but will use this as an opportunity to cash out of the company to the tune of 223 million euros.

Yet rampant patriotism being what it is on both sides of the channel, the deal couldn't go through without assessing who ended up with the national advantage. England's The Independent reports that the merger is "widely seen as a French victory."

Under the new structure, Eric de Rothschild and his family will own 38.4 per cent of the company while David de Rothschild and family will hold 25.1 per cent, totaling a 63.5 percent stake for the French side of the family. The children of Sir Evelyn will hold the remaining 36.5 per cent.

by Liz Gunnison

Photo by Dave M. Benett/Getty Images