Tullett Prebon Confident of Completing ICAP Deal In Weeks

The deal to acquire ICAP’s voice broking and information business is expected to be completed by the end of 2016.

Tullett Prebon, a UK interdealer broker, announced today that its deal to buy the global broking business of rival ICAP is expected to be completed in the forthcoming weeks, as originally planned, bringing the lengthy process for regulatory approval to a close.

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Final Stages

Tullett Prebon announced its plans to acquire ICAP’s voice broking and information business for over £1 billion ($1.67 billion) last November, in which it would receive all of the associated technologies owned by ICAP including iSwap and Fusion, together with some of the company’s joint ventures and associates.

As reported by Finance Magnates in March this year, Tullett Prebon reaffirmed that the deal was entering its final stages, and that once all the approvals for the deal were received, it expected to complete the deal within the current calendar year.

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Chief Executive John Phizackerley commented that he “continued to hope the deal would be done by the end of 2016.”

Once the deal is completed, it will make Tullett Prebon the world’s largest interdealer broker, an industry in which middlemen help move large or illiquid fixed income, derivatives and commodities trades between brokers.

Structural Change

The company is presently undergoing structural change due to tougher regulation and technological advances. The deal has antitrust approval in the UK, US and Australia among others, but has yet to be given the nod by the UK’s Financial Conduct Authority (FCA), and several other jurisdictions, including Spain, Brazil and Hong Kong.

Phizackerley admitted the process could go into next year but added: “We’re not at that point yet.”

Terms of the original deal have been altered during the course. To secure antitrust approval, ICAP relented on plans to take a near 20 percent stake in the new company, to be called TP ICAP, and agreed to sell its oil broking desk to US group, INTL FCStone.

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