Broker ICAP snaps up biofuels dealer
ICAP, the world’s largest interdealer broker, has purchased European biofuels dealer Sun Commodities for an undisclosed sum.
Geneva-based Sun was established in 2008 to capitalise on the booming market – both physical and derivative – for alternative fuels such as bioethanol, biodiesel and vegetable oils produced from rape, soya and palm.
The firm’s existing staff, including managing director Laurent Gonelle, will join the parent company.
The acquisition marks an expansion for ICAP Energy into European alternative fuels, as it looks to increase broking of physical commodities.
Although no price was placed on the deal, at the end of 2010 Sun had gross assets of approximately $803,000 (£506,000).
The deal is ICAP’s second acquisition in the last week after the purchase of Singaporean tanker firm Island Shipbrokers. The firm is attempting to fill gaps in its portfolio and provide an increasingly global service.
Paul Newman, managing director of ICAP Energy in London, said: “The increased use of biofuels and persistently high prices for traditional fuels is driving renewables centre stage. We are very pleased to welcome the Sun Commodities team to ICAP, and their established strengths in this specialised area will allow us to bring new and important services to our customers.”
Shares in ICAP were up slightly at 388.1p yesterday.