A London-based commodities broker controlled by a group of former Lehman Brothers executives is set to land a takeover from a major industry peer this week.
Sky News has learned that Marex Group will announce on Monday that it has reached an agreement to buy ED&F Man Capital Markets from ED&F Man Holdings.
The purchase price is estimated at around $220 million, a banking source said over the weekend.
The transaction will be significant for Marex, which had drawn up plans to list on the London Stock Exchange last year but scrapped the move due to tough market conditions.
A relaunch of its medium-term plans is a strong possibility, city sources say.
The absorption of ED&F Man Capital Markets will strengthen Marex by expanding its operations in the United States, as well as in the Middle East and Asia.
The business combination will also cement Marex’s clearing business and strengthen its metals franchise, as well as its fixed income and equity operations.
ED&F Man Capital Markets has approximately 450 employees – the majority of whom are based in the United States – who will transfer to Marex.
The takeover is expected to be completed by the end of the year, subject to regulators’ approval, a source said.
Marex is controlled by the JRJ Group, whose founders included Jeremy Isaacs and Roger Nagioff, who had been among Lehman’s most senior and respected executives.
A Marex spokesperson declined to comment.