Marex Group Acquires UK Market Maker Winterflood in £103.9 Million Cash Deal

Marex Group plc plans to acquire Winterflood Securities from Close Brothers Group plc for roughly £103.9 million in cash, including a £15 million premium.

This purchase aims to strengthen Marex’s position in the UK cash equities market and diversify its revenue streams. Subject to regulatory approval, the deal is expected to be completed early next year.

Winterflood’s Position in the Market

Winterflood is among the top market counterparties by volume on the London Stock Exchange, reportedly controlling about 15% market share. Serving over 400 institutional clients, the firm leverages proprietary technology to provide robust execution and market-making services.

It also operates Winterflood Business Services, offering outsourced dealing, settlement, and custody services to institutions, wealth managers, and retail aggregators. The acquisition supports Marex's strategy to broaden its UK cash equities operations and deepen relationships with asset and wealth managers.

By integrating Winterflood’s established client base and technology, Marex anticipates expanded distribution capabilities and the opportunity to introduce a wider array of products and services to new clients.

Boosting Offerings

“We believe we can gain economies from operating at scale and also benefit from Winterflood’s great technology and strong client relationships, which will enable us to introduce additional products and services from across our platform to a new set of clients,” Commented Ian Lowitt, the Chief Executive Officer of Marex.

Once finalized, Marex expects to leverage Winterflood’s technology and client network to reinforce its standing in the UK equity market.

Last month, Marex Group and NatWest announced a new cross-margining arrangement to help FX clients reduce collateral requirements by linking futures and prime brokerage positions. This initiative targets institutional clients who trade FX futures through Marex and use NatWest for FX prime brokerage services, aiming to deliver margin relief through a coordinated approach.

Read more: Marex Shifts Focus From FX and CFDs to Commodities With Brazil's Agrinvest Acquisition

The collaboration seeks to improve client capital efficiency without requiring them to consolidate their providers. Both firms emphasize that the solution supports clients who maintain separate relationships for clearing and prime brokerage but want to avoid double margining.

Marex Group also recently announced an agreement to acquire Agrinvest Commodities, a Brazilian firm specializing in the physical corn and soybean markets. The acquisition is intended to strengthen Marex’s physical commodity operations in Brazil, a crucial region in the global food production landscape.