Swiss dry bulk broker Ifchor and traditional UK tanker shipbroker Galbraiths are set to rank among the top five-largest shipbrokers globally when they complete their planned merger.
Those working with the new partners, however, said the drivers for the merger are not simply about size but also about the range and quality of service the new entity can offer, combined with profitability.
The two shipbrokers have been discussing the prospect of joining forces throughout 2022.
They were introduced by what has been described as a mutual friend and are understood to have initially bonded over dinner in Geneva.
Contrary to market chatter, the planned tie-up was never an on-off prospect but instead — as one close associate put it — it has “only ever been on”.
Neither party needed to do this, he said, which set a higher threshold for getting things right and so taking more time to ensure they are well thought through.
- Founded: 1845
- CEO: Bjorn Andersen
- Headquarters: London, UK
- Staff: Around 100
- Offices: 10
- Main specialist areas: Tankers and sale and purchase
The big reveal on the merger comes as shipbroking is facing more demands for research, advisory and environmental services from its clients, and is facing some of the same questions over consolidation as they are.
The two privately held companies have highlighted how they complement each other without their businesses overlapping.
Bringing their different specialisms together should allow the new entity — which has set up a temporary website under the working title Ifchor-Galbraiths — to offer broking services across the whole spectrum of shipping sectors
- Founded: 1977
- Co-CEOs: Ghigo Ravano and Manu Ravano
- Headquartered: Lausanne, Switzerland
- Staff: Around 180
- Offices: 15
- Main specialist area: Dry bulk
The new company will also have an office presence in all the major shipping hubs globally. Currently Ifchor has no London base and Galbraiths does not have an office in Switzerland.
One key player in the tie-up described it as “unique” in big shipbroker mergers, where often competing trading desks are being brought together and jobs are under threat. In contrast, he said the merger is about “welcoming new friends rather than potential competitors”.
Insiders have also pointed to a similar ethos and “family style” culture — in Ifchor’s case being a family — founded and run business with the “Galbraiths family” being a term the historic shop has aspired to.
But the two companies, who have reputations for guarding their privacy, also come from different cultures and the merger will see the marrying of a European-style broker from decidedly Italian roots with a veteran UK-centric outfit both of whom have been focused in broking areas largely unfamiliar to the other.
Both Ifchor and Galbraiths have been making recent moves to expand the scope of their operations.
In November 2021, Ifchor announced a cooperation deal with German offshore wind farm shipbroker Global Renewables Shipbrokers (GRS).
The two have also moved into the carbon markets.
Galbraiths has launched joint venture carbon platform Maritime Carbon Solutions, while Ifchor hooked up its carbon trading services with ClearBlue Markets to form Ifchor ClearBlue Oceans.
