BCS To Expand Into North America With Acquisition Of US Broker/Dealer
- M&A Deals
- 01.10.2015 01:00 am
BCS Financial Group, the largest securities broker on the Moscow Exchange, has made its first move into the North American market with entry into an agreement for the strategic acquisition of Alforma Capital Markets Inc., the wholly-owned New York-based subsidiary of Alfa-Bank.
BCS’ holding company and AO Alfa-Bank have signed an agreement where BCS will acquire 100% shares in the US broker/dealer upon receipt of US regulatory approvals. The company is due to be rebranded as BCS Americas Inc., and current CEO, David Denson will continue in his position. The business will continue to provide brokerage and investment services to US-based institutional clients seeking to access Russian markets.
Both parties are in the process of applying for approval of the transaction from US financial regulators (including SEC and FINRA). Once approval is granted the transaction will be closed, which is expected to happen by the end of 2015.
Roman Lokhov, Chief Executive Officer of Global Markets and Investment Banking at BCS added:
“Despite the temporary geopolitical challenges, US-based institutions remain the leading international investors in emerging and Russian assets. Therefore we see huge potential in the US for our business to seize significant market share. We expect the macro and geopolitical conditions in Russia to recover eventually, and believe this is the right time to invest in our ability to service the US and expand our platform.”
“BCS has held a prominent role in the Russian markets for over 20 years, and currently controls roughly 25% of securities trading across all asset classes on the Moscow Stock Exchange. Given this position, we are confident that US firms will seek our services, and we have already received positive interest from local institutions.”
Michael Pijiolis, Head of Equities at Alfa-Bank:
“We would like to note a high level of expertise exhibited by BCS professionals when preparing the deal and thank the partners for efficient cooperation. The Banking group will continue its operations in the US market through local partners”
In the past three years BCS has become one of the leading independent financial institutions in Russia through strategic investment in market expertise and infrastructure. Its research team is one of the top rated internationally, and boasts robust best execution, financing capabilities and prime brokerage services.