Brokerage and financial technology firm BGC Group announced Tuesday that it has agreed on a deal to acquire OTC Global Holdings, the largest independent institutional energy and commodities brokerage firm.
The move will significantly bolster BGC’s Energy, Commodities, and Shipping (ECS) business and expand its global reach.
OTC brings a wealth of expertise and a strong client base, with operations spanning North America, Europe, and Asia. The company offers a wide range of brokerage services, including crude and refined products, petrochemicals, natural gas, ship brokerage, and biofuels.
The combination of OTC’s product suite and BGC’s existing ECS business is expected to create a powerful platform to serve the global energy and commodities market.
“OTC has built a premier global energy, commodities, and shipping business that is supported by world-class talent,” commented Howard Lutnick, Chairman and CEO of BGC Group. “This acquisition will complement our existing ECS business and will enhance our ability to deliver a comprehensive, best-in-class offering to our global client base.
Joe Kelly, CEO of OTC Global Holdings, echoed Lutnick’s sentiment, noting, “BGC has an incredible offering with a proven track record of growth and innovation.”
“We have built something very special and unique at OTC. We look forward to joining BGC’s platform and believe that together we will become a leading global broker for energy, commodities, and shipping products, delivering unparalleled value to our clients worldwide.”
The acquisition is expected to be completed in a “substantially all-cash transaction.” Jefferies LLC is serving as the exclusive financial advisor to OTC Global Holdings.
