ICAP chief ponders Tullett transaction completion date

Transaction requires other change of control consents before completion.

Michael Spencer, chief executive officer at ICAP, has explained the transaction with Tullett Prebon is on track to be completed this year, although it requires other ‘change of control’ consents before completion.

The transaction received approval from the UK’s Financial Conduct Authority (FCA) and ICAP is hopeful it will be completed by the end of this year.

“We remain optimistic that the transaction will complete by the end of the year, however the transaction requires other change of control consents to be received before completion can occur,” Spencer said.

He added that Tullett Prebon is responsible for and working to secure those outstanding clearances.

ICAP’s global hybrid voice broking business – which Tullett Prebon is acquiring as part of the transaction - saw profits before tax increase 28% in the first half of this year to £59 million.

Spencer said ICAP is in the final phase of transaction before the launch of NEX Group, which will focus entirely on electronic markets and post-trade business.

“While we continue along the slow journey to more normal market conditions I am confident that the fundamental strengths of the business will provide an excellent platform for NEX Group’s long term growth and success,” he said.

ICAP’s investment arm Euclid has been busy over the last year acquiring emerging FinTech companies, ahead of the group’s rebrand into NEX Group.

Its most recent acquisition was of regulatory reporting firm Abide Financial, which is set to become a subsidiary of ICAP’s post-trade risk and information business. 

ICAP reported its trading profit decreased 7% to £51 million in the first half of this year, compared to the same period last year.

Spencer described “uncertain times” as financial markets try to understand the impact of both the Brexit vote and Donald Trump’s recent presidential election victory.