TP ICAP acquires New Zealand broker Aotearoa Energy

TP ICAP, the world’s largest inter-dealer broker, announced on Tuesday it has acquired Aotearoa Energy, a New Zealand-based gas, power, and carbon brokerage firm. The takeover is salted to provide TP ICAP’s clients with access to the New Zealand emissions trading market.

Established in 2008, New Zealand’s emissions market covers various sectors including forestry, agriculture, industrial processes, electricity generation, and fuel suppliers. ICAP believes that acquiring Aotearoa Energy will complement its existing Australian power and gas brokerage operations, highlighting the global demand for New Zealand emissions permits.

Financial terms of the acquisition were not disclosed. Daniel Skipper, the founder of Aotearoa Energy, will continue to lead the company post-acquisition. TP ICAP confirmed that Aotearoa Energy will retain its name and continue trading independently following the completion of the acquisition.

Kellee Campbell said, “This is a strategically important acquisition for ICAP, and indeed the wider TP ICAP Group, given our growth aspirations in both the region and sector. We are excited about working with Daniel and his team to bring new products and services to market, such as facilitating access to NZ Financial Transmission Rights, which Aotearoa Energy currently offer to a small number of clients.”

Daniel Skipper, Aotearoa Energy said, “TP ICAP’s acquisition marks the next exciting chapter in Aotearoa Energy’s journey of growth and innovation and aligns with our commitment to delivering exceptional brokering services to our customers. I am thrilled to complement our NZ energy market services with the additional resources, capabilities, and scale that TP ICAP can offer.”

TP ICAP, which facilitates brokerage between institutional clients across commodities, shares, currencies, interest rate swaps, and bonds, often benefits from market volatility. However, the exceptional volatility-driven trading volumes witnessed in 2022 cooled off last year, impacting TP ICAP’s Global Broking business.

The London-listed interdealer brokerage also expressed confidence in its future business, noting the expectation of higher interest rates throughout the year and the moderating effect of the recent strong US Dollar.

TP ICAP, which earns its bread from making markets in different asset classes, employs thousands of brokers who negotiate trades in markets such as FX and commodities. The company’s broking customer base comprises mainly larger dealers, whereas exchange-traded volume reflects a more diverse participant mix.

TP ICAP was formed five years ago following Tullett Prebon’s acquisition of the voice-broking business from its former rival interdealer broker ICAP. TP ICAP’s data and analytics division is a provider of real-time price information from the global OTC financial and commodity markets, covering data from the wholesale inter-dealer brokered financial markets.