Acquisition Enhances Oil Brokerage’s Market Reach in Middle Distillates, Fuel Markets, and Shipping, and further expands OTC Global Holdings’ global leadership
LONDON and HOUSTON and NEW YORK, Oct. 9, 2024 /PRNewswire/ — Oil Brokerage, a leading player in the global commodities brokerage sector and a subsidiary of OTC Global Holdings, today announced its acquisition of Blue Commodities (BC). This strategic acquisition strengthens Oil Brokerage’s (OB) position in key physical broking markets, particularly in Northwest Europe (NWE), the Mediterranean (Med), and West Africa (WAF).
Under the terms of the agreement, Blue Commodities will fold into Oil Brokerage and OTC Global Holdings. The acquisition represents a significant step forward in OB’s goal of providing an integrated service offering that span physical broking, derivatives, and shipping markets. The inclusion of Blue Commodities enhances OB’s capabilities in the middle distillates and fuel markets, complementing OB’s well-established presence in gasoline, derivatives, and shipping.
“A Natural Fit for Growth”
Jon Pike, CEO of Blue Commodities, will transition to the role of Chief Operating Officer (COO), Physical, at Oil Brokerage, leading the newly integrated team. Commenting on the acquisition, Pike noted:
“We are thrilled to join forces with Oil Brokerage, whose capabilities in derivatives and shipping will significantly enhance the services we can provide to our clients in physical broking. The combination of Blue’s experienced teams with OB’s extensive network and expertise will allow us to offer a fully integrated service across markets. This partnership positions us to deliver an even higher level of service and innovation to both existing and new clients.”
Strategic Integration and Leadership
Oil Brokerage, already a dominant player in the gasoline market, sees the acquisition of Blue Commodities as a key component in strengthening its offerings in physical broking. Blue Commodities’ established expertise in NWE, Med, and WAF regions brings invaluable knowledge and relationships, offering OB an immediate foothold in markets that traditionally require long-term organic growth.
James McNicol, CEO of Oil Brokerage, commented on the acquisition:
“Blue Commodities’ physical broking business perfectly complements our existing strengths in derivatives and shipping. The acquisition fills critical gaps in our portfolio and enhances our ability to serve our clients with a comprehensive, integrated solution across physical and financial markets. We’re excited about the future with Jon and his team on board.”
Blue Commodities’ leadership team, including Desk Heads Jack Bithell (Fuel), Ben Zahavi (WAF), Paul Hart (Med ULSD), and Pete Ingleton & John Collins (NWE ULSD), will remain intact, ensuring that clients continue to benefit from their extensive market expertise and established relationships.
OTC Global Holdings’ Expansion into Physical Markets
The acquisition also aligns with OTC Global Holdings’ strategy to expand its footprint in physical broking. Joe Kelly, Co-CEO and President of OTC Global Holdings, remarked:
“Acquiring Blue Commodities accelerates our entry into physical markets, especially in regions and sectors where we see significant growth potential. The proven teams from Blue Commodities bring a wealth of industry knowledge and client relationships that would be difficult to replicate organically. This acquisition strengthens OTCGH’s global portfolio and positions us to lead in both physical and derivatives markets.”
With the integration of Blue Commodities into the OB and OTCGH ecosystem, the combined entity will offer a full spectrum of services to clients, further solidifying its leadership in global commodities markets.
About Oil Brokerage
Oil Brokerage is a leading interdealer broker in the global energy markets, specializing in the broking of physical and financial commodities. The company is part of OTC Global Holdings, the largest independent interdealer commodities brokerage in the world.
About Blue Commodities
Blue Commodities is a specialist physical commodities broker with a focus on middle distillates and fuel markets, operating across Northwest Europe, the Mediterranean, and West Africa.
About OTC Global Holdings
OTCGH is the world’s largest independent institutional broker of commodities, covering financial and physical instruments from offices in Chicago, Dubai, Houston, London, Louisville, New Jersey, New York, and Singapore. OTCGH has been awarded 5x “Broker of the Year” by Energy Risk. With a portfolio of nearly 20 companies, OTCGH is a liquidity provider for CBOT, ICE, NYMEX, and NODAL. The company serves more than 450 institutional clients, including over 70 members of the Global Fortune 500, and transacts in hundreds of different commodity delivery points in Asia, Europe and the Americas.
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