Close Brothers said Friday that it has agreed to sell its execution and securities unit, Winterflood Securities, to Marex Group for £103.9 million in cash, as part of a strategy to streamline operations and focus on core lending activities.
Close Brothers to Sell Winterflood Securities to Marex in £103.9m Deal
The transaction is expected to be completed in early 2026, subject to customary regulatory approvals from the Financial Conduct Authority (FCA) and the U.S. Financial Industry Regulatory Authority (FINRA).
Close Brothers CEO Mike Morgan said, “This transaction marks another important step in simplifying the group to focus on our core specialist lending business.”
The sale follows the group’s disposal of CBAM earlier this year.
Marex Chief Executive Ian Lowitt said the deal would allow the firm to “transform our existing equity market making business into a leading franchise,” and highlighted Winterflood’s strong client relationships and advanced technology.
“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,” added Lowitt.
The sale is expected to boost Close Brothers’ Common Equity Tier 1 capital ratio by around 30 basis points to approximately 14.3% on a pro forma basis. An additional 25 basis points could be realised through reduced operational risk-weighted assets.
Winterflood will be classified as “held for sale” and a discontinued operation in Close Brothers’ 2025 results. A goodwill impairment loss of approximately £15 million is anticipated, but no further disposal loss is expected.
