Marex to acquire ED&F Man Capital Markets
“Marex will be able to provide the appropriate resources and investment to enable the firm to achieve its full potential and we are therefore confident that this change in ownership will be to the benefit of all our stakeholders.”
Marex Group has agreed to acquire ED&F Man Capital Markets, the financial services division of ED&F Man Group, in a deal expected to complete by the end of the year, subject to regulatory approvals.
The acquisition of ED&F Man Capital Markets, which has approximately 450 employees across the globe and generated over $235 million of revenues in 2021, will create a strong US franchise and extend its global footprint to Dubai and APAC.
Marex will benefit from a stronger client offering in Clearing, adding to its Metal franchise and to the nascent businesses in Fixed Income and Equities.
Focus on core soft commodities trading businesses
Ian Lowitt, Chief Executive Officer of Marex Group, commented: “We are delighted to welcome the ED&F Man Capital Markets team to Marex. The business is an excellent fit with our existing capabilities, and I am excited by the opportunity of working across the significantly strengthened and expanded global footprint. Marex is gaining a high-quality global team. Underscoring our commitment to grow and better serve our clients, this acquisition creates a more competitive, diversified and resilient firm which will provide an enhanced client offering as well as more opportunities for our staff. This is an exciting time for the firm, and we anticipate a bright future for the combined businesses.”
Jade Moore, Group Executive Director of ED&F Man, said: “Over the decade since its creation, ED&F Man Capital Markets has grown to become a financial brokerage operating at the heart of the global financial services ecosystem. On completion, a new chapter will start as part of Marex and with the benefit of their market leading platform. The sale of ED&F Man Capital Markets is very much in line with our group’s strategic plan to focus on our core soft commodities trading businesses. Marex will be able to provide the appropriate resources and investment to enable the firm to achieve its full potential and we are therefore confident that this change in ownership will be to the benefit of all our stakeholders.”
Marex has increased revenues by 25% and profit by 190% versus the respective prior year’s performance, delivering an average portfolio ROE of 20%, as the firm continues to integrate its past acquisitions.
A few of its recent acquisitions include Starsupply, execution broker XFA, the customer business of Rosenthal Collins, soft commodity and structured products business Volcap, and is currently in talks to buy OTCex Group’s voice brokerage activities.