The plan for interdealer broker ICAP to sell its hybrid voice broking and information business to Tullett Prebon might be in trouble, or at best further delayed.
ICAP announced Tuesday the the UK’s competition watchdog, the Competition and Markets Authority (CMA), which had begun looking at the transaction in early April still had not made up its mind. And in fact, was ‘upgrading’ its review of the planned merger to ‘Phase 2’.
A lot is riding on the planned sale, including ICAP’s plans to change its name to NEX Group plc after the deal closes, and assuming that it does.
ICAP’s full statement on the matter follows.
Statement regarding transaction with Tullett Prebon
ICAP plc (IAP.L), a leading markets operator and provider of post trade risk and information services, notes the statement today from the Competition and Markets Authority (“CMA”) announcing that the proposed Transaction to dispose of ICAP’s global hybrid voice broking and information business to Tullett Prebon plc is being referred for a phase 2 investigation solely as a result of potential concerns in respect of the voice/hybrid broking of oil products unless suitable remedies are offered.
ICAP is confident that clearance from the CMA will be obtained and, together with Tullett Prebon, is in the process of obtaining the necessary remaining regulatory and competition approvals from relevant authorities. The proposed Transaction remains on track to complete later this year.
Upon completion the ICAP Group will begin to trade as NEX Group plc, a focused electronic and post trade group with a leading portfolio of financial market infrastructure businesses and products.