The acquisition of ICAP’s voice broking business is set to move forward with a shareholder vote at both Tullett Prebon and ICAP.
Tullett Prebon announced a shareholder vote will be held at both firms on 24 March to approve Tullett’s acquisition of ICAP’s voice broking business.
In a statement released on Tuesday, Tullett Prebon explained that the vote will follow the publication of a prospectus with further information on the deal.
An analyst presentation to shareholders at Tullett Prebon said the acquisition will combine the strengths of two leading global hybrid voice broking franchises, “to create the largest player in the industry.”
The multi-platform hybrid voice broking business will operate across all major asset classes with up to 3,245 brokers.
On completion, the current group chief operating officer at ICAP will be appointed to the board of the Enlarged Group as a director, and chief operating officer.
Michael Spencer, chief executive officer at ICAP, will hold the title of president, acting as an advisor to the board rather than a member.
Tullett Prebon’s strategic review of the acquisition of the voice broking business concluded that many asset classes are not suitable for trading on electronic venues.
The acquisition’s completion is conditional to shareholder approval at both firms and various regulatory bodies including the Financial Conduct Authority.
Tullett Prebon is confident, however, the deal will be completed this year.
Earlier this month, the US Department of Justice requested details on the £1.1 billion deal.
Tullett Prebon referred to this in its statement: “At this stage there is no further update on discussions with the DoJ.”
The firm concluded in the presentation: “Delivering Tullett Prebon’s objectives of becoming the world’s most trusted source of liquidity in hybrid OTC markets and the best operator in global hybrid voice broking.”