21st Jun 2016 16:49
LONDON (Alliance News) - Interdealer brokers ICAP PLC and Tullett Prebon PLC have offered to sell ICAP's London-based oil desks, in a bid to address competition concerns, the UK Competition & Markets Authority said on Tuesday.
The offer comes after the CMA earlier this month said it was considering an in-depth investigation into the deal, under which ICAP plans to sell its voice broking business to Tullett. The CMA had raised concerns that the deal would give rise to the prospect of a lessening of competition for the voice-hybrid broking of oil products.
In a statement, the CMA said it will consider in detail the undertakings offered by Tullett and ICAP instead of referring their deal for in-depth investigation.
The CMA said it will consider whether to accept the offer from the pair to sell ICAP's London-based oil desks, responsible for providing broking services to customers based in Europe, Middle East, & Africa, to an up-front purchaser approved by the regulator.
The CMA said it has until August 16 to make its decision, with the possibility of extending this timeframe if "it considers that there are special reasons for doing so".
Shares in ICAP closed up 3.8% at 430.10 pence on Tuesday, whilst shares in Tullett closed up 1.0% at 321.00p.
By Hannah Boland; [email protected]; @Hannaheboland
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