Bermuda companies invest in Traxys Group
Two Bermudian-based companies are among the new owners of Traxys Group, a Luxembourg-headquartered global physical trader and merchant in metals and natural resources.
An investor group active in mining and natural resources led by Regent Mercantile Holdings Limited and LOM Financial Group — both of which are based on the island — along with Traxys’s management, global market maker Optiver and investment firm CoLift, will acquire all of the interests in Traxys held by funds managed by global investment firm Carlyle and affiliates of Louis M. Bacon, the founder of Moore Capital Management LP.
Traxys’s management will increase its ownership stake. Financial terms were not disclosed. The transaction is expected to close in May after regulatory and other approvals.
“The increasing demand for raw materials to address the global energy transition serve the booming electric vehicle and battery storage markets and meet the needs of a growing global middle class coupled with structural underinvestment in raw material production markets underpin the opportunities for Traxys,” said Mark Kristoff, chief executive of Traxys.
“We believe that combining Traxys’s in-depth knowledge of the raw materials markets with Optiver’s financial strength and expertise in financial derivatives trading will enable us to better serve our customers and suppliers with new solutions to secure their supply and optimise price exposure in our key markets.”
Alan Docter, chairman of Traxys, said: “We’re delighted to welcome our new investors and partners. The new ownership structure uniquely balances the interests of management, employee stakeholders, and strategic and financial investors.
“This transaction bolsters Traxys’s global leadership position in the energy transition metals supply chain. I’m confident this new organisation will enhance Traxys’s technology and battery materials franchise around the world and help accelerate the transition to a clean energy future.”
Mr Docter added: “Traxys appreciates the contributions of Carlyle and Bacon, who have supported our growth from $5.5 billion to $10 billion in revenues since the onset of our partnership in 2014. They have been valued partners and friends.”
Jan Boomaars, CEO of Optiver, said: “We’re pleased to become an investor in Traxys, a global commodities trading firm playing a critical role in the renewable energy transition.
“As a leading liquidity provider, Optiver has long leveraged our knowledge and expertise to help improve financial markets. With commodities playing an increasingly important role for many investors, we look forward to applying our principles and knowhow to bring greater efficiency to the physical commodities markets.”
Regent Mercantile Holdings is a privately owned Bermudian-based company which invests in a wide range of asset classes. It has financed numerous mining ventures in diverse commodities including potash, gold, uranium, copper, iron ore and lithium.
As well as being involved in mining investments, Regent Mercantile is an active investor in early-stage companies based on technological innovation, the hospitality sector and healthcare.
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