The one “small concern” that the Competition and Markets Authority (CMA) has about the proposed combination of ICAP Plc (LON:IAP) and Tullet Prebon Plc (LON:TLPR) should be resolvable, according to City broker Numis.
Analyst Jonathan Goslin highlighted that the CMA has not found any significant competition concerns in 19 of the 20 product categories it considered. For oil commodity related products, however, competition was noted to be more limited in the Europe, Middle East and Asia (EMEA) region.
In a note, he said: “we believe the impact on the enlarged Group should be limited as we understand this only relates to oil products in EMEA.
“IGBB generated only c.£120m from commodities last year, of which we estimate around 75% was derived from oil products globally (c.£90m) with around half that generated in EMEA (c.£45m).
“Therefore, if TP ICAP was forced to sell the IGBB oil team in EMEA, we estimate it may reduce total combined revenues (2017E £1,542m) by only c.3%.”
Goslin highlighted that the respective management teams remained confident that the deal will still complete later this year.
Elsewhere in the City, Canaccord Genuity apparently sees some respite for Weir Group Plc (LON:WEIR) which it now sees as a ‘hold’ rather than a ‘sell’.
Citigroup similarly upgraded Rio Tinto Plc (LON:RIO) to ‘neutral’ from ‘sell’.
Peel Hunt moved its price target for leisure services group Accesso Technology Group PLC by a notch or two - repeating a ‘buy’ recommendation and lifting its price target to 1600p from 1280p.
N+1 Singer meanwhile upgraded Goals Soccer Centres Plc (LON:GOAL) to ‘buy’ from ‘hold’.