By Pratima Desai
LONDON (Reuters) – Marex Group has bought UK-based Darton Commodities, a trader of cobalt metal used to make aerospace and military equipment, the financial services firm told Reuters on Monday, declining to give further details.
Two sources familiar with the matter said the transaction completed in March, but they did not know how much commodity broker Marex paid for Darton or exactly when the deal was agreed.
However in its preliminary first quarter results published on April 2, Marex said a “bargain purchase gain is expected to be recognised as a result of the group’s acquisition” of Darton.
In the profit before tax section, the bargain purchase line estimate showed an estimated negative entry of between $3.4 million and $6.1 million, leaving adjusted profit before tax estimates at between $92.3 million and $97.3 million.
According to Companies House, a UK government agency responsible for registering companies, Darton’s address was changed on April 8 to 155 Bishopsgate in the City of London, where commodities broker Marex is headquartered.
Marex’s website shows it offers derivative trading of industrial metals including aluminium, copper, molybdenum, nickel, zinc and tin.
On the physical side, Marex owns recycling firm Tangent Trading, which trades metals such as copper used in the power and construction industries.
Marex recently bought warehousing and logistics company Edgemere Terminals, according to sources.
Prices of cobalt metal used to make missiles, aerospace parts, magnets for communication, and radar and guidance systems have risen since Democratic Republic of Congo suspended cobalt exports in February.
At around $16 a lb or $35,270 a metric ton, they are up nearly 60% since hitting a nine-year low in February.
(Reporting by Pratima Desai; Editing by Susan Fenton)
