The US Department of Justice (DoJ) has requested details for the planned £1.1 billion merger of ICAP’s voice brokering business with Tullett Prebon.
According to a statement from Tullett, the review from the DoJ is focused on the “proposed post completion of shareholding and governance arrangements between Tullett Prebon and ICAP.”
After competition of the deal, existing Tullett investors will be left holding around 44% of the enlarged company, with ICAP owning 19.9% and ICAP’s investors with 36.1%.
However, ICAP state the review was “expected” and the review will most likely not block the deal.
“The Company remains confident that the necessary clearances will be obtained within the timeframe previously announced.
“The Transaction to merge the global hybrid voice broking business with Tullet Prebon is proceeding as expected and it is anticipated that completion will take place during 2016. Currently both companies are in the process of obtaining regulatory and competition approvals from various authorities.”
The sale of ICAP’s voice brokering business reflects the increasing move towards electronic markets by interdealer brokers.
Last week TheTRADE revealed details of ICAP’s new trading platform, ‘Yuniti’, which will integrate all of the company’s electronic FX brokering services.