Marex expands in the Middle East with the acquisition of Aarna Capital
October 2, 2024Marex Group plc, the diversified global financial services platform, today announces that it has agreed to acquire Aarna Capital Limited (“Aarna Capital”) to expand its operations in the Middle East and grow its clearing business, in line with its strategy to broaden its client base, diversify its operations and increase earnings resilience.
Based in Abu Dhabi, Aarna Capital provides clearing, execution and customised risk management solutions in energy, base and ferrous metals, as well as financial markets such as equities, fixed income and FX.
The acquisition of Aarna Capital will provide Marex with additional capabilities in a new location and access to around 180 local clients, which includes institutional investors, family offices and corporate clients, through a well-established and respected team. The acquisition will be highly complementary to Marex’s existing operations in the Middle East, which includes approximately 60 employees in Dubai, and is aligned with Marex’s strategy to bring new clients to its platform, increase the capabilities it can offer existing clients, and grow its global footprint.
The transaction is expected to be accretive to earnings and contribute around five percent of Marex Group’s profit after tax from fiscal year ended 31 December 2025 onwards. This includes anticipated day one synergies from Aarna Capital’s business activity flowing through the Marex platform, with savings from internalising clearing fees and higher net interest income through Marex’s financing relationships. In addition, Marex has identified significant scope for future growth by adding new clients in the Middle East through these additional capabilities and from cross-selling Aarna Capital’s products to existing clients. This acquisition is expected to close in late 2024, subject to regulatory approval.
Ian Lowitt, CEO of Marex commented:
“The Middle East region is an important growth opportunity for us, this acquisition will give us a presence in Abu Dhabi and will expand our clients and capabilities in the region. We are very excited about the potential of this acquisition, which will bring new clients to our platform and allow us to grow our clearing business, which is at the heart of our strategy to connect clients to markets. This acquisition meets our strict financial criteria and is at an attractive valuation, representing three to four times expected profit after tax. We also retain some firepower from the capital raised in our IPO to support further growth investments, as we look to continue to expand and diversify our business.”
Dmitry Nedvetsky, Senior Executive Officer at Aarna Capital commented:
“We are delighted to be joining the Marex platform. This is a beneficial step for both parties. Our clients will continue to be serviced by our team but will have access to a greater range of products and services from the broader Marex franchise. Meanwhile we hope to offer Marex’s clients our services from Abu Dhabi. The Middle East represents an important growth market, and enables Marex to introduce new clients to its platform, increase the capabilities it can offer existing clients, and grow its global footprint.”
About Marex:
Marex Group plc (NASDAQ: MRX) is a diversified global financial services platform providing essential liquidity, market access and infrastructure services to clients across energy, commodities and financial markets. The Group provides comprehensive breadth and depth of coverage across four core services: Clearing, Agency and Execution, Market Making and Hedging and Investment Solutions. It has a leading franchise in many major metals, energy and agricultural products, executing around 129 million trades and clearing 856 million contracts in 2023. The Group provides access to the world’s major commodity markets, covering a broad range of clients that include some of the largest commodity producers, consumers and traders, banks, hedge funds and asset managers. Headquartered in London with more than 35 offices worldwide, the Group has over 2,000 employees across Europe, Asia and the Americas. For more information visit www.marex.com.
About Aarna Capital Limited:
Aarna Capital is a multi-asset brokerage firm, operating from Abu Dhabi Global Markets (ADGM) and offering customers access to futures, options, FX, Bullion, equities, CFDs and fixed income products. From its headquarters, Aarna Capital combines the talent and experience of its hands-on traders with the innovative electronic platform, global liquidity network, and high-speed market infrastructure. Aarna Capital’s customers have access to liquidity from hundreds of exchanges and venue destinations globally across every developed and most emerging market and a majority of frontier markets. This includes all of the major electronic liquidity providers, multilateral trading facilities, and proprietary liquidity pools.
Enquiries please contact:
Nicola Ratchford / Robert Coates
Marex
+44 (0) 7786 548 889 / +44 207 856 4561 | nratchford@marex.com / rcoates@marex.com
James Jarman / Katherine Bell
FTI Consulting
+44 (0) 7776 111 222 / +44 (0) 7976 870 961 | marex@fticonsulting.com
Forward looking statements:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including the timeline for closing the Aarna Capital Limited acquisition and the anticipated benefits of its completion, including on financial results for the fiscal year 2025. In some cases, these forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions.
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