BGC Group to Acquire OTC Global Holdings

BGC Group, a major player in brokerage and fintech, announced on Tuesday (Oct 22) a definitive agreement to acquire OTC Global Holdings (OTC), a leading independent institutional energy and commodities brokerage firm. This acquisition aims to strengthen BGC's Energy, Commodities, and Shipping (ECS) business while broadening its international footprint.

OTC's operations, which span North America, Europe, and Asia, cover a broad spectrum of brokerage services, including crude and refined products, petrochemicals, and natural gas, as well as ship brokerage and biofuels. The integration of OTC's offerings with BGC's existing ECS portfolio is anticipated to create a comprehensive platform for the global energy and commodities market.

"OTC has built a premier global energy, commodities, and shipping business that is supported by world-class talent," said Howard Lutnick, Chairman and CEO of BGC Group. Joe Kelly, CEO of OTC Global Holdings, added, "We look forward to joining BGC's platform and believe that together we will become a leading global broker for energy, commodities, and shipping products."

The acquisition is structured as a "substantially all-cash transaction," with Jefferies LLC acting as the exclusive financial advisor for OTC.