Inter-dealer broker ICAP (LON:ICAP) is selling its global broking business to Tullett Prebon (LON:TLPR) in return for a majority stake in the enlarged group.
Tullett will buy the business known as IGBB in return for new Tullett Prebon shares representing 56% of the new group.
It would issue the shares to a newly created holding company of ICAP, dubbed ICAP NewCo, and to ICAP shareholders.
Following completion of the deal, 36.1% of the enlarged Tullett Prebon share capital would be issued to ICAP shareholders and 19.9% to ICAP NewCo.
Existing Tullett Prebon shareholders would continue to own 44% of the group after the deal, which is expected to result in savings of at least £60mln.
The deal includes ICAP's associated technology and broking platforms including iSwap and Fusion and certain ICAP joint ventures and associates.
ICAP's chief executive Michael Spencer said: "Financial regulatory reform means the global financial markets have profoundly changed and this transaction means both companies will be better suited to meet the market's changing needs and better serve our customers."
IGBB, which trades from 37 sites in 23 countries, provides voice and voice-electronic hybrid inter‐dealer broking services and information services products across asset classes including rates, emerging markets, commodities, equities, FX and money markets and credit.
ICAP also announced its group interim results. In the six months ended 30 September 2015, it reported revenue of £595mln, 4% worse than in the same period last year.
On a constant currency basis, revenue from post-trade risk and information increased 8% and electronic markets by 1%, offset by a 14% decrease in global broking.
On a continuing basis, global broking revenue was down 1% on the prior half-year.
Inter-dealer brokers buy and sell bonds and derivatives for big investment banks. Shares in ICAP (LON:IAP) rose 25.2p to 496.9p and Tullett's (LON:TLPR) stock fell by the same amount to 333.8p.