New firm will own nearly 50% of the interdealer broking market but cost cutting of up to 30% expectedTullett Prebon has said it will acquire Icap’s global interdealer broking business for £1.1bn in an attempt to combat falling profits in a sector struggling from shrinking trading volumes.
Details of the tie-up approach six days after the pair confirmed they were in talks. Michael Spencer,Icap’s chief executive, said the businesses would benefit from improved scale. Large cost cuts are also expected, and with Citi,one of the advisers, predicting a 30% reduction in joint costs.
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Source: theguardian.com