The agreement, which is expected to close before the end of Q4 2011, will see BNP Paribas CIB's Global Equities and Commodity Derivatives (GECD) business and Cadiz Securities actively join forces to develop a combined offer. The new set-up will, as such, provide global solutions in cash, derivatives research and brokerage to both local and international clients.
By leveraging BNP Paribas' international presence and market expertise, the agreement is expected to boost Cadiz's global reach in cash and derivatives to complement its existing business in South Africa. BNP Paribas will profit from Cadiz's local expertise as it makes further strides in growing its existing equities product offering in emerging markets.
“We are particularly happy to make this investment and look forward to welcoming onboard Cadiz Securities staff and expertise,” said Eric Deudon, Global Head of Emerging Markets for BNP Paribas CIB's GECD. “The deal demonstrates both a commitment to our strategy of developing an offer in emerging markets, and our growth ambitions in the cash, derivatives research and brokerage spaces”.
Cadiz Securities currently employs more than 40 experienced professionals, working for a strong and diversified local client base active in both stock brokerage and equity derivatives. The firm holds an unsurpassed track record of fifteen years as the number one Derivatives Research House in South Africa (*).
“This move represents a positive step forward for our securities business and will dramatically increase our current capabilities” commented Ram Barkai, CEO of Cadiz Holdings Limited. “Owing to increasing pressures in the local securities markets, we identified the need to reposition the securities business to gain access to offshore distribution, to capture foreign flows into JSE and an offshore research base. We look forward to the undoubted international recognition this business stands to gain, developed through leveraging the strong global reputation of BNP Paribas.”
(*) Source: Financial Mail Rankings
Offical date: 2011-08-04