Marex Agrees to Acquire ED&F Man Capital Markets

Marex, an essential tech-enabled liquidity hub connecting clients to global energy, commodity and financial markets, announced that it has agreed to acquire ED&F Man Capital Markets, the financial services arm of ED&F Man Group, which will boost the broker's metals business and expand its fixed income and stock business.

A source close to the situation said the takeover by Marex was worth $220 million. The deal was expected to close by the end of the year, subject to regulatory approval.

"We are delighted to welcome the ED&F Man Capital Markets team to Marex. The business is an excellent fit with our existing capabilities, and I am excited by the opportunity of working across the significantly strengthened and expanded global footprint," said Ian Lowitt, CEO of Marex. "Marex is gaining a high-quality global team. Underscoring our commitment to grow and better serve our clients, this acquisition creates a more competitive, diversified and resilient firm which will provide an enhanced client offering as well as more opportunities for our staff. This is an exciting time for the firm, and we anticipate a bright future for the combined businesses."

"Over the decade since its creation, ED&F Man Capital Markets has grown to become a financial brokerage operating at the heart of the global financial services ecosystem," commented Jade Moore, Group Executive Director of ED&F Man. "On completion, a new chapter will start as part of Marex and with the benefit of their market leading platform. The sale of ED&F Man Capital Markets is very much in line with our group's strategic plan to focus on our core soft commodities trading businesses. Marex will be able to provide the appropriate resources and investment to enable the firm to achieve its full potential and we are therefore confident that this change in ownership will be to the benefit of all our stakeholders."

Marex has shown its expansion ambitions over the past year. Last September, the company announced the acquisition of fintech firm Volcap Trading​, aiming to further expand the group's offering in bespoke structured products and commodities. In December, the broker received approval from the Australian Securities and Investments Commission (ASIC) to open an office in Sydney​, Australia. And then, Marex announced that it had opened a new office in Minneapolis to serve as a central hub for commodity risk management this April. Two months later, the company and OTCex Group entered into exclusive talks​ to buy the latter's voice brokerage activities. As Marex stated, the company would continue to achieve strong growth both organically and through strategic acquisitions.