INTL FCStone Inc. (Nasdaq:INTL), today announced that INTL Global Currencies Limited, its wholly-owned subsidiary in the United Kingdom, has agreed to acquire 100 percent of Ambrian Commodities Limited ("ACL"), the London Metals Exchange ("LME") brokerage subsidiary of Ambrian Capital Plc. The London-based ACL, currently a non-clearing LME member, specializes in the development and execution of risk-management programs designed to hedge price fluctuations in base metals for a wide variety of producers, manufacturers and fabricators.
The purchase consideration will be equal to net asset value. The acquisition is not expected to have any immediate impact on INTL FCStone's earnings.
The acquisition is conditional upon the approval by the UK Financial Services Authority of the proposed change of control of ACL, following which the company will be renamed INTL FCStone (Europe) Limited.
"This acquisition allows us to fill the last remaining gap in our portfolio of physical commodity risk-management advisory and execution services, and in particular will allow us to offer our customers a full range of hedging alternatives through the London Metals Exchange," commented Sean O'Connor, CEO of INTL FCStone.
Philip Smith, Managing Director of INTL Global Currencies, commented, "We see this acquisition as an exceptional opportunity that will serve as a launching pad for our group's capabilities in Europe. At the same time, INTL FCStone's strategic focus and financial resources will allow us to maximize the potential of Ambrian Commodities' established client network and management team."