(Bloomberg) — ED&F Man Holdings Ltd. is in talks to sell its brokerage unit as the commodities trader best known for hauling sugar and coffee seeks to turn its business around, according to people familiar with the matter.
The London-based trader already has an offer for its ED&F Man Capital Markets unit from rival brokerage Marex Group, said the people, who asked not to be named because the discussions are private.
The company has also held talks with Prudential Financial Inc. and no final decision has been made, the people said.
ED&F Man and Marex both said they don’t comment on market speculation.
Prudential declined to comment.
ED&F Man has been selling non-core and under-performing assets as it refocuses on its trading roots. The company earlier this year got the green light from a U.K.
court to ring-fence its commodities business and restructure about $1 billion in debt beyond 2025.
This isn’t the first time ED&F Man has tried to sell its brokerage business, with a previous attempt being disrupted by the pandemic.
Offloading the unit — which handles everything from metals to crypto currencies — would allow the firm to focus on trading sugar, coffee and liquid products including molasses.
While the trading division turned profitable in the past few years, the company still posted a fifth year of losses in the 12 months through September.
Buying ED&F Man’s brokerage business could provide a boost to Marex, which was forced to cancel an initial public offering last year due to challenging market conditions.
A deal with Prudential could be easier as the companies are not direct competitors. PGIM, Prudential’s asset management arm, invested $65 million in ED&F Man Capital Markets last year.
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