A London-based commodities broker controlled by a group of former Lehman Brothers executives will this week take over a major industry peer.
Sky News has learned that Marex Group will announce on Monday that it has reached an agreement to purchase ED&F Man Capital Markets from ED&F Man Holdings.
A bank source said by the end of this week the purchase price is believed to be approximately $220 million.
The transaction will be a significant one for Marex, which had planned to list shares on the London Stock Exchange last year but canceled it due to difficult market conditions.
City sources say the possibility of a revival of its plans in the medium term is huge.
Absorbing ED&F Man Capital Markets will boost Marex by expanding its operations in the US, as well as in the Middle East and Asia.
The business combination will also strengthen Marex’s clearing operations and add to its metals franchise, as well as its equities and fixed-income operations.
ED&F Man Capital Markets has about 450 employees – most of them in the US – that will move to Marex.
A source said the takeover is expected to be completed by the end of the year.
Marex is controlled by the JRJ consortium, whose founders include Jeremy Isaacs and Roger Nagioff, who were both Lehman’s most respected and senior executives.
A spokesperson for Marex declined to comment.
