Paralleling an earlier move into the metals sector by its rival Cargill, in early January ADM completed the acquisition of ICAP's metals business, including operations at the LME. Both are key strategic moves by major agricultural commodity firms to diversify their operations.
ADM Investor Services International Ltd (ADMISI) has boosted its commodity division with a transfer of the base metals broking operations from major broker ICAP, it said on Wednesday. An emailed statement said the transfer was completed on Jan. 2 and the team trading on the London Metal Exchange (LME) would continue to be led by Robert Rees. "We are pleased to further strengthen our LME client offering with the addition of this ICAP team, enhancing our considerable strength in both LME and commodities," the statement said. It did not give any further details, such as financial arrangements. Last month, industry sources told Reuters that ICAP planned to exit its base metals broking business on the LME at the end of December, as part of wider restructuring.