23 December 2009
Macquarie Group ("Macquarie") (ASX: MQG) today announced it has entered into an agreement to acquire the equity derivatives and structured products business of German private bank Sal. Oppenheim. The move complements Macquarie's existing Asian derivatives operation and adds a wider set of products to its growing European business.
Sal. Oppenheim's derivatives business has market making and issuance operations on exchanges in Germany, Switzerland, Austria and Italy. Under the agreement, more than 90 Sal. Oppenheim staff based in Germany and Switzerland will join Macquarie.
"Sal. Oppenheim's strong European retail derivatives and structured products business will provide Macquarie with access to a new product suite, an advanced technology platform and a team of high calibre people with deep local experience." said Mark Gilbert, Macquarie's Head of Derivatives for Europe, Middle East and Africa. "Sal Oppenheim's clients will benefit from Macquarie's commitment to growing the business and access to new products which reflect Macquarie's global scale."
Sal Oppenheim retail equity derivatives are sold through private banks and retail brokers in Germany, Switzerland, Austria and Italy, accessing a derivatives market with more than €275 billion of issued product.
The retail equity derivatives business will use the Macquarie Oppenheim brand following completion.
Transaction terms and timing
The terms of the transaction are confidential between the parties. The impact on Macquarie's regulatory capital surplus as a result of the acquisition is not expected to be material. The transaction is expected to close at the beginning of the second quarter of 2010, subject to regulatory approvals and other customary closing conditions.
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Macquarie's main business focus is making returns by providing a diversified range of services to clients. Macquarie acts globally on behalf of institutional, corporate and retail clients and counterparties. Founded in 1969, Macquarie operates in more than 70 office locations in 28 countries. Macquarie employs approximately 12,700 people and has assets under management of more than €130 billion, as of September, 2009.
Macquarie's European business is headquartered in London with more than 1100 people in 16 locations, including 50 people in Frankfurt and Munich focussed on corporate finance, infrastructure asset management, funds and investment products.
Macquarie Securities Group has teams located in the major financial markets around the world, providing clients with specialist capabilities in equity underwriting, equity sales and trading, equities research and corporate broking and is consistently ranked highly for its research, sales and execution. It is also a leading provider of listed and OTC structured products to both retail and institutional investors across Asia. Macquarie is the market leading warrant issuer in Korea and Singapore, and currently the second leading issuer in the highly competitive Hong Kong market. In addition to Asia, there is a growing presence in the UK, Africa and North America.
About Sal. Oppenheim's equity derivatives and structured products business
Sal. Oppenheim is one of the major issuers of equity derivatives and structured products in Europe, including a leading position in Germany. The Business has in excess of 6,000 products on issue with a combined notional value of approximately €850 million.
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