Marex acquires ED&F Man Capital Markets for $220 million expansion

The two brokers said in early July that they had entered into exclusive talks over the transaction, which leaves the London Metal Exchange (LME) with one member less.

ED&F Man Capital Markets (MCM), the financial services division of ED&F Man Group, has 450 employees worldwide and recorded more than $235 million in revenue in 2021. Marex earned $543 million in revenue the last year.

“This acquisition creates a more competitive, diverse and resilient business,” said Marex Chief Executive Ian Lowitt.

The deal resulted in the LME losing a member who operates in its ring, the last outcry trading room in Europe, reducing the number to eight.

Both brokers have special teams of ring traders, but only one team will be needed for the merged operation.

Marex said the takeover would expand its presence in Dubai in the Asia-Pacific region and create a US franchise. It should be completed by the end of the year.

ED&F Man said selling MCM would allow it to focus on its core business, raw materials.

“We are therefore confident that this change in ownership will benefit all of our stakeholders,” said Jade Moore, Group Executive Director of ED&F Man.

Marex, which withdrew an initial public offering last year, said in April it still wanted to enter the market and was waiting for calmer conditions before a possible relaunch.

Marex is majority owned by private equity firm JRJ Group and its partners, Trilantic Europe and BXR Group, which took stakes in the brokerage in 2010.

(By Eric Onstad; Editing by Sandra Maler and Mark Potter)