On Monday, CMC Markets, a London-based firm, said that the company is looking into separating its leveraged and non-leveraged operations. However, as the board is still considering the advantages of separation, the negotiations are said to be in their “very early phases.”
“The Board decided to explore the option of a managed separation of the Group’s non-leveraged and leveraged operations in order to maximize shareholder value,” CMC’s official announcement read.
The talks are preliminary stages and may not result in a managed split of these in the future.
CMC advances several industries, including gaming, finance, healthcare, and real estate. CMC specializes in leveraged trading and spread betting and operates in many international jurisdictions.
The firm thinks it’s a good idea to split the organization, establishing a leveraged division that includes the spreading business and a non-leveraged unit with technology and new investment products platforms.
Sky News says the two combined operations will be listed on the London Stock Exchange, but only one of them will retain the CMC brand.
CMC’s stock tumbled after it cut its revenue projections for the current financial year, resulting in a significant drop in share price.
Expanding business areas
Meanwhile, the firm is expanding outside of its typical leveraged sector. It plans to launch a new UK investment D2C and B2B platforms in 2022 that will provide investment products and physical shares, among other things.
It also struck a partnership with the country’s biggest retail bank, ANZ, and acquired more than 500,000 of its share investing clients with total assets of at least £25 billion.
“The Group currently owns two strong underlying businesses that are leveraged and non-leveraged as a result of this acquisition.” CMC added.
According to CMC, both firms have received significant investment, and each has excellent growth potential in large nations with substantial competitive advantages.