BNP Paribas CIB and Cadiz Holdings agree to join forces in Securities business
04.08.2011 | Group, Press release
BNP Paribas Corporate & Investment Banking (CIB) and South African financial services group Cadiz Holdings Limited are pleased to announce that an agreement has been signed for BNP Paribas CIB to become the majority shareholder in Cadiz Securities, the business unit hosting the company's offer in the cash, derivatives research and brokerage fields.
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
About BNP Paribas Corporate and Investment Banking
BNP Paribas Corporate and Investment Banking employs around 20,000 people in over 50 countries and services 14,000 corporate and institutional clients worldwide.
BNP Paribas CIB excels in :
Derivatives - where it is one of the leading global players in rates, credit, forex, commodity and equity derivatives.
Capital markets - where it is one of the top European houses in both ECM and DCM (bond, securitization, convertibles and equity issuance)
Structured finance - where it is amongst the leaders in acquisition, export, project, energy and commodity finance globally.
About BNP Paribas
BNP Paribas (www.bnpparibas.com) is one of the strongest banks in the world*. The Group has a presence in more than 80 countries and more than 200,000 employees, including more than 160,000 in Europe. It ranks highly in its three core activities: Retail Banking, Investment Solutions and Corporate & Investment Banking. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. BNP Paribas is rolling out its integrated retail banking model across the Europe-Mediterranean zone and boasts a large network in the western part of the United States. In its Corporate & Investment Banking and Investment Solutions activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas and solid and fast-growing businesses in Asia.
*Rated AA by Standard & Poor's i.e. 3rd rating level on a scale of 22.
Cadiz Holdings (www.cadiz.co.za) is a specialist financial services group which is listed in the Financial Services: Investment Services sector of the JSE Limited.
Listed in 1999 on the JSE Stock Exchange, the group specialises in research and trading in the equity derivatives and fixed income markets, quantitative and fundamental research, stockbroking, asset management, retail wealth management and structured solutions for the corporate, institutional and retail markets. These activities are housed in two business segments, namely Securities and Structuring, and Asset and Wealth Management.
Cadiz's leadership position in the derivatives market has been recognised in the authoritative Financial Mail analyst rankings, where the company has been rated as South Africa's foremost derivatives research house for an unrivalled 15 consecutive years.