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Proposed Acquisition by Tullet Prebon plc of ICAP plc global wholesale broking business
18 July 2016
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Reference: | CCS 400/004/16 |
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Notifying Parties: | The parties to the agreement are:
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Notifying Date: | 24 May 2016 |
Summary of transaction: | (i) The names of the merger parties: Tullett Prebon plc (“TP”) and ICAP plc (“ICAP”). (ii) A description of the transaction: This notification relates to the proposed acquisition of ICAP’s global wholesale broking business (“IGBB”) by TP (“Proposed Transaction”). (iii) A description of the business activities of the merger parties worldwide and in Singapore: TP and IGBB operate as wholesale intermediaries, principally in the provision of broking services to institutions trading financial and commodity instruments in the world’s major wholesale over the counter and exchange based markets. Each also has an associated data sales business, which provides pre-indicative pricing information which is informed by the trading activities of the broking businesses. TP and IGBB operate in Europe, the Middle East, Africa, North and South America and Asia Pacific. (iv) A description of the overlapping goods or services, including brand names: TP’s and IGBB’s Singapore based wholesale intermediary broking activities overlap with regard to the following asset classes and products: Treasury (Forward FX, Cash Deposits), Interest Rate Derivatives (Interest Rate Swaps) and Energy and Commodities (Oil). Both parties also have associated data sales businesses, which provide pre-indicative pricing information which is informed by the trading activities of the broking businesses. All TP trading desks in Singapore operate under the TP brand name, with the exception of some Energy and Commodities products which trade under the PVM or Aspen brand names. All IGBB trading desks in Singapore operate under the ICAP brand name. (v) A description of substitute goods or services: Electronic trading platforms, exchanges, single dealer platforms and direct trading are substitutes for voice / hybrid broking. (vi) The applicant’s views on: a. the definition of the relevant market(s); b. the way in which competition functions in this market; c. barriers to entry and countervailing buyer power; and d. the competitive effects of the merger (non-coordinated, coordinated and/or vertical effects, as relevant). The Applicants submit that the relevant market consists of:
There will not be a substantial lessening of competition post-the Proposed Transaction for the following reasons:
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Decision: | The proposed merger, if carried into effect, will not infringe the Section 54 prohibition. |
Decision date: | 18 July 2016 |