World News
Macquarie to Buy Jefferies Commodities Business Hit By OW Bunker Collapse
Macquarie Group Ltd. (Macquarie) Thursday was said to be in talks to buy U.S. investment bank Jefferies Group LLC’s (Jefferies) commodities and financial derivatives brokerage business, Reuters reports.
The U.S. bank was recently hit by the collapse of OW Bunker and announced a $52 million provision against OW Bunker receivables.
Jefferies' owner Leucadia National Corp. recently said it was considering strategic options for the business, including a sale.
Macquarie is one of several potential suitors, according to sources, but is said to be keen to expand its commodities business, which is a key growth driver, as it eyes 20 percent earnings growth for 2015.
It is understood that the Australian bank would significantly increase the size of its commodities derivatives business, while it has elsewhere been bolstering its presence in the physical markets.
In November, Macquarie Futures USA LLC reported to the U.S. Commodity Futures Trading Commission that it held $1.6 billion in client segregated accounts, while Jefferies LLC said it held $2.1 billion.
According to sources not authorised to speak to the press, a deal could be concluded within months.
OW Bunker filed for bankruptcy in November last year.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 505.00 | 3.00 | 603.50 | 1.00 |
| Rotterdam | 472.00 | 3.50 | 610.00 | 1.00 |
| Houston | 468.00 | 2.50 | 614.50 | 6.50 |
| Fujairah | 498.50 | 4.00 | 709.00 | 3.00 |
| Global 20 Ports Average | 531.50 | 3.50 | 708.00 | 5.00 |
| Global 4 Ports Average | 486.00 | 2.00 | 634.00 | 2.50 |
| Global Average Bunker Price | 569.50 | 2.00 | 751.50 | 1.50 |
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