BGC Group, Inc. has announced a primarily cash deal to acquire OTC Global Holdings, LP (“OTC”), the largest independent institutional energy and commodities brokerage firm. The acquisition aims to bolster BGC’s Energy, Commodities, and Shipping (ECS) business, expanding its reach in the global markets.
Expanding Global Energy and Commodities Presence
OTC Global Holdings operates across North America, Europe, and Asia, offering services in crude and refined products, petrochemicals, natural gas, and ship brokerage. BGC sees OTC’s product offerings as a strong complement to its existing ECS business, enhancing the firm’s ability to provide a more comprehensive platform for the global energy and commodities market.
Howard Lutnick, Chairman and CEO of BGC Group, commented on the acquisition: “OTC has established a premier global business in energy, commodities, and shipping, supported by exceptional talent. This acquisition will strengthen our ECS platform and enable us to offer a more robust and integrated service to our global clients.”
The deal is structured as a mostly cash transaction and is pending regulatory approval and standard closing conditions. Jefferies LLC is serving as the financial advisor for OTC Global Holdings.
A Promising Partnership
Joe Kelly, CEO of OTC Global Holdings, expressed enthusiasm about the partnership: “We have built something unique at OTC, and we look forward to joining BGC’s platform. Together, we aim to become a leading global broker for energy, commodities, and shipping products, delivering exceptional value to our clients worldwide.”
BGC’s Corporate Transformation
This acquisition follows BGC Group’s recent transition from BGC Partners to a full C-Corporation in July of last year. Now operating as BGC Group, Inc., the company has changed its Nasdaq ticker symbol from ‘BGCP’ to ‘BGC,’ reflecting its updated corporate structure and digital presence.
The acquisition of OTC is expected to enhance BGC Group’s market position, providing clients with a wider range of innovative solutions and further expanding its global energy and commodities footprint.
