TD Bank sells TD Cowen’s $1.3B business to Marex

abdelaziz Fathi

London-headquartered commodities broker Marex has agreed to acquire TD Cowen’s prime brokerage and outsourced trading business, which will be integrated into Marex’s capital market division. This division was established following the acquisition of ED&F Man Capital Markets in 2022.

The exact financial details of the acquisition have not been disclosed, but TD Bank Group acquired the business in March in an all-cash $1.3 billion deal.

Marex’s acquisition of TD Cowen’s prime brokerage and outsourced trading business adds capabilities to its market infrastructure, including multi-asset-class custody, execution, financing, security lending, and related technology solutions. The deal will also create an integrated dealer that will advance its growth strategy in North American through the addition of Cowen’s US equities sales trading, and execution, as well as research capabilities.

This move diversifies Marex’s business and extends its offering across asset classes. The acquired business will be integrated into Marex’s Capital Markets division and branded as Marex Prime Services and Marex Outsourced Trading. Once the transaction closes, the new entity will be led by Jack Seibald and Michael Rosen and includes approximately 160 employees across eight offices globally.

Ian Lowitt, CEO of Marex, commented: “This transaction advances our strategy, increasing our capabilities to connect clients to markets in new ways across multiple geographies. Mike and Jack have built a terrific business, and its addition to Marex broadens the range of essential infrastructure we provide to clients, as well as creating opportunity for Marex to provide additional services to a new set of clients. Expanding our Capital Markets business also adds to our diversification and to the resilience of our franchise.”

Dan Charney, Vice Chair, TD Cowen and Co-Head of Global Markets, commented: “The divestiture of Cowen Prime was planned as a part of the acquisition of Cowen by TD earlier this year. As we continue to focus our efforts on growing TD Securities Prime Services, we are pleased to have found a great home for Cowen’s legacy Prime Services business in Marex, bringing significant opportunities for both businesses.”

The move comes shortly after Marex completed the acquisition of rival ED&F Man Capital Markets to boost its metals business and expand in fixed income and equities across the UK, US, the Middle East and Australia. It added that the integration is progressing well as the company onboarded over 400 former ED&F Man Capital Markets employees.

Marex said these deals represent a superb opportunity of corporate backing and consolidation with a worldwide growing leading player. It should therefore pave the way for future ambitious business development steps by benefiting from access to Marex’s global infrastructure and balance sheet.

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