Tullett Prebon (TCAP) Still Expects to Complete NEX (ICAP) Deal in 2016

Tullett Prebon, the UK-headquartered interdealer broker, announced this morning to investors that its deal to buy the global hybrid voice broking and information business of rival ICAP (already rebranded as NEX) is still expected to be completed before the end of the year, as originally promised.

It also announces that it has changed its official name from Tullett Prebon plc to TP ICAP plc and will commence trading under the new ticker starting "TCAP" tomorrow.

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The company issued an update to the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term confirming that 310,314,296 new Tullett Prebon shares, representing approximately 56% of its issued share capital (calculated on a fully diluted basis and immediately following such issuance), will be issued to the shareholders of NEX in connection with the acquisition, including NEX's associated technology and broking platforms and certain of NEX's joint ventures and associates.

The company also repeated today that, as previously announced, the transaction is expected to be completed on 30 December 2016.

Background

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.

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 in an industry in which middlemen help move large or illiquid fixed income, derivatives and commodities trades between brokers.