The UK’s Competition and Markets Authority (CMA) has indicated that it is satisfied with the altered terms of the proposed merger between Tullett Prebon and Icap, and will not refer the deal for an in-depth investigation.
Profit & Loss reported in June that the two brokerages offered to change the terms of the proposed acquisition of Icap’s global wholesale broking and information business (IGBB) by Tullett in order to avoid an in-depth investigation by the CMA.
Under the terms of the new proposal, Icap and Tullett agreed to sell Icap’s London-based oil desks – with key staff – that are responsible for providing broking services to customers based in EMEA to an up-front buyer approved by the CMA.
In addition, Icap said that it no longer intends to retain a 19.9% interest in the combined entity, Tullett Prebon-Icap (TP Icap), after completion of the acquisition.
In a statement issued today the CMA revealed that INTL FCStone will buy the oil desks and that it remains “satisfied that the proposed remedy will address the concerns identified”.
The statement concludes: “The CMA has therefore decided that the anticipated merger will not be referred for an in-depth phase two investigation.”