CMC Markets today responded to the rumours that the company is splitting into two entities.
The Group confirmed it is in the “very early stages” and the board is still evaluating the benefits of separating into leveraged and non-leveraged divisions in order to maximise shareholder value.
The official announcement stated:
Board intends to undertake an exploratory review to consider the viability of a managed separation of the Group’s non-leveraged and leveraged businesses in the interests of maximising shareholder value. As these discussions are exploratory at this stage, they may or may not lead to a managed separation of these businesses in due course.
CMC Markets has decided to split into a leveraged division which consists of the leveraged trading and spreading business part of the business and into a non-leveraged arm which includes technology and new investment products platforms.
The news of the separation follows the news of CMC Markets lowering its expectations for operating income in the first half of the financial year 2022.
Additionally, the company is also planning to launch a UK investment D2C and B2B platforms next year, which will offer investment products, physical shares, tax wrappers and third-party funds.
It has also entered a deal with Australian retail bank, ANZ, to acquire over 500,000 of its share investing clients with total assets in excess of £25 billion.
The statement said:
As a consequence of this acquisition, the growing size of investing clients and their assets, the launch of the new UK investment platform, and its growing B2B platform business, the Group boasts two strong underlying businesses, leveraged and non-leveraged. Both businesses have benefited from significant investment and each has strong growth prospects in sizeable markets with excellent competitive positions.
