Collins Stewart Tullett to take over rival broker Prebon for £130 million
Collins Stewart Tullett, the international broking firm has signed a heads of agreement to take over rival broker Prebon Group for around £130 million (EUR 195 million), Collins Stewart said on Thursday.
The deal would make Collins Stewart the second biggest inter-dealer (intermediary in wholesale financial market transactions, including the lucrative energy derivates business) behind market leader Icap.
Collins Stewart began to strengthen its position in global energy broking recently with the acquisition of energy broker Starsupply. The Tullet Liberty division, which was bought by Collins Stewart last year also has a strong global market presence in energy. It has about 15% of the total inter-dealer market, compared to Icap’s 25%. Icap also offers electronic services, unlike Tullet. This is something Prebon would bring to the table.
Collins Stewart said it wouldn’t give another update on the negotiations until September, when it announces its interim results.
Patrick Keenan, who is set to become c.e.o. of the merged business told The Financial Times that he did not anticipate large job losses as a result of the merger and that the two operations, which together will employ nearly 3,000 people, largely complemented each other.
In the year to the end of March, Prebon’s revenues totalled £290 million and operating profit was £17 million. Tullett has revenues of £427 million, bringing the combined businesses close to Icap’s £800 million of revenues. LB
Other Related Stories
