Tullett Prebon and ICAP merger inquiry

In June, the Competition and Markets Authority (CMA) said that the anticipated acquisition of ICAP PLC by Tullett Prebon of the voice/hybrid broking business may result in a substantial lessening of competition.

The CMA said it would be referred for an in-depth phase 2 investigation unless an acceptable undertaking was offered by Tullet Prebon.

The two parties, Tullet and ICAP, both overlap in the supply of wholesale intermediary services, mainly in voice/hybrid broking services to institutions that trade financially, and commodity instruments over the counter as well as in exchange based markets.

Making a suitable undertaking

In order to address the concerns of the CMA, the two companies have offered to sell ICAP’s London based oil desk. This is responsible for providing services to customers in Africa, the Middle East and Europe. The CMA must approve the upfront buyer.

INTL FCStone Limited has been suggested as the buyer for the oil desks.

The CMA has accepted this undertaking to be adequate in remedying the competition concerns it has, and has accepted them in principle. However, a final decision has yet to be made as the CMA is inviting all interested parties to come forward about any of their views on the matter.

What we do

We have years and years of specialist experience in representing both individual clients and businesses for Group Action Claims, ranging from medical claims; product claims; consumer actions; and, as we see here, competition claims.

Competition law can be justifiably strict to ensure that consumers can enjoy fair prices and ensure business can operate efficiently and not take liberties at the expense of the consumers. Taking the easy road of price fixing, cartels, and supply restrictions in order to manipulate the markets and lessen competition is wholly unfair.

If you have been affected by any competition issue, please don’t hesitate to contact us for advice.

Source: www.gov.uk/cma-cases/tullett-prebon-icap-merger-inquiry