Tullett Prebon snaps up PVM Oil | City A.M.

City brokerage Tullett Prebon has reached an agreement to acquire independent broker of oil instruments PVM Oil Associates.

PVM’s customers include oil companies, independent refiners and producers, banks and investment funds.

PVM reported revenue of $107.5m (£63.4m) and profit before tax of $18.2m for the year ended 31 July 2013, with consolidated gross assets of $79.2m.

The initial consideration is $112m, which will be satisfied through the issue of new ordinary shares in the company.

In a separate announcement, Tullett said that since the start of 2014 the level of activity in financial markets had remained subdued, while market conditions continue to be challenging.

The brokerage reported revenue of £248m in the four months to April, which was 12 per cent lower at constant exchange rates compared to the same period last year.

In response to the difficult conditions Tullett is planning to reduce its headcount and other fixed costs. The cost cutting programme is set to slash annual fixed costs by roughly £20m.