'We’re aiming for is a single support staff infrastructure between the two organisations'.
ICAP and Tullett Prebon announced Wednesday that they had agreed terms for the disposal by ICAP of its global hybrid voice broking and information business to Tullett, including ICAP's associated technology and broking platforms and certain of ICAP’s joint ventures and associates.
Commenting on Wednesday’s announcement, Michael Spencer, Group Chief Executive Officer of ICAP, said: 'Today we announce a compelling opportunity to bring together two world class, client focused broking businesses, both with a proud heritage. By coming together they will benefit from improved scale, allowing for a significantly improved product suite and service for customers. Financial regulatory reform means that the global financial markets have profoundly changed and this Transaction means both companies will be better suited to meet the market’s changing needs and better serve our customers. This is an historic moment for both companies and the voice and hybrid broking industry. I have every confidence that this new structure will emerge as a great platform for success'.
The Transaction provides the opportunity to combine the complementary strengths of two leading global hybrid voice broking franchises to create the largest player in the industry, which will achieve significant cost synergies of at least £60 million.
The Independent reports that hundreds of jobs are at risk as a result of the deal.
A new company called TP Icap will be created, with £1.5bn in combined revenues and more than 5,000 staff. It leaves the multimillionaire Icap founder and former Conservative Party treasurer Michael Spencer free to focus a new standalone Icap on electronic broking, which contributes more than three-quarters of Icap’s profits.
John Phizackerley, Tullett Prebon’s CEO, said: 'Inevitably what we’re aiming for is a single support staff infrastructure between the two organisations', Asked whether that meant hundreds of job losses among the new company’s 2,000 support staff, Phizackerley said: 'That would be a logical conclusion but I’m not putting a number on it today'.
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