Tullett-ICAP deal gets US approval

Tullett Prebon said on Friday that its proposed acquisition of ICAP’s global hybrid voice broking and information business has been cleared by US authorities.

The interdealer broker said it has been granted early termination of the waiting period under the US Hart-Scott-Rodino Antitrust Improvements Act in respect of the deal.

The transaction has also been cleared by the Competition Commission of Singapore.

“Tullett Prebon remains confident that the transaction is on track to close in 2016.”

Back in June, ICAP proposed selling its London-based oil broking business and issuing its shares in the enlarged Tullett Prebon to remedy concerns raised by the UK competition regulator.

ICAP, which will change its name to NEX Group when the deal is done, said it and Tullett were in discussions about offloading its oil broking business "within the appropriate timeframe".

ICAP added that it no longer intends to retain a 19.9% interest in TP-ICAP after completion of the deal and has agreed with Tullett that, subject to regulatory and shareholder approval, it will issue these shares directly to its shareholders.

As a result, NEX shareholders will hold roughly 56% of TP-ICAP's enlarged share capital on completion rather than the previously proposed 36.1%.

At 1412 BST, ICAP shares were up 1.6% to 460.10p, while Tullett was 0.6% higher at 336p.