ICAP buys shipbroker and targets Asia growth
ICAP, the world’s largest interdealer broker, has announced the purchase of Singaporean firm Island Shipbrokers as it looks to boost its influence in the Asian market.
Island’s core business is the chartering, sale and purchase of oil tankers and it has been working closely with ICAP for several years.
ICAP Shipping began as a dry bulk specialist before moving into tankers, but until now it has not had an Asian tanker arm.
The new deal will give Island access to ICAP’s lengthy client list and the ability to take advantage of the Asian commodities boom, with staff working closely with ICAP’s existing dry cargo offices in Shanghai and Singapore.
The cost of buying out Island’s previous owners – Tim Madley, Allan Spangsberg and Mystic Enterprises Limited – was not disclosed but the Asian firm has net assets of $2.4m (£1.5m), gross assets of $8.4m and employs 39 staff in its Singapore office.
Henry Liddell, chief executive of ICAP Shipping, said: “Island Shipbrokers’ extensive experience in the tanker chartering and sale and purchase markets will complement our existing London and Shanghai operations and strengthen ICAP Shipping’s growth in the Asia region.”
Tim Madley, president of Island Shipbrokers, added: “Our performance in the physical tanker chartering and sale and purchase markets will be further enhanced by ICAP Shipping’s capability in tanker derivatives and research. With a broader network of global coverage, we will be strongly placed to continue expansion in the Asian shipping markets.”
Shares in the parent firm closed up 1.5 per cent at 395.8p yesterday.