Poten & Partners parent BGC Group has reached an agreement to acquire OTC Global Holdings, the company that owns fast-growing Oil Brokerage, for an undisclosed sum in a deal that confirms previous reports of the talks by TradeWinds.
Terms of the cash purchase were not detailed in an announcement on Tuesday from Nasdaq-listed BGC and Oil Brokerage parent OTC Global Holdings.
While the deal has much broader implications in the energy markets, there has been rampant speculation as to the narrower consequences within shipping and the tanker market.
Specifically, will there be an integration between venerable traditional tanker and energy commodities broker Poten and hungry upstart Oil Brokerage?
One market source previously told TradeWinds he expects the two brands to march forward separately under the new and common ownership.
But this remains to be seen, and there was little clarity on the question following Tuesday’s announcement.
Poten chief executive Steven Garten referred questions to a corporate spokeswoman, who said there would be no comment beyond Tuesday’s press release.
Oil Brokerage chief executive James McNicol could not immediately be reached.
BGC Group is headed by chairman and chief executive Howard Lutnick who also holds the same role at financial services company Cantor Fitzgerald. BGC Group bought Poten & Partners in 2018.
TradeWinds first reported on 26 September that the talks were believed to involve a play by BGC for Oil Brokerage, which has been expanded rapidly with the hire of rival tanker brokers for the past two years as a build upon traditional business in the oil market.
In a follow-up article on 1 October, TradeWinds cited sources who said BGC’s interest was not specifcally in Oil Brokerage but rather in the parent company.
“It’s the whole business, not just OB,” a source said at the time.
The latter scenario turned out to be correct, and was hailed by executives of both parties in Tuesday’s release.
“OTC has built a premier global energy, commodities, and shipping business that is supported by world class talent,” said Howard Lutnick, chairman and chief executive of BGC Group, who referenced the firm’s energy, commodities and shipping presence.
“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. We look forward to welcoming the OTC team onto the BGC platform, combining our innovative solutions to drive greater results for our clients.”
Similar language came from Joe Kelly, chief executive of OTC.
”BGC has an incredible offering with a proven track record of growth and innovation,” Kelly said.
“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.”
