Broking Shake-Up Goes On As Zeus Buys Novum

The latest wave of consolidation among City stockbrokers is to take another step forward with the acquisition of Novum Securities by its rival Zeus Capital.

Sky News understands that Zeus and Novum have agreed heads-of-terms on a takeover deal which has been submitted to City regulators for approval‎.

The transaction‎ is expected to be announced later this year, according to a person close to the deal who declined to comment on its value.

It (Other OTC: ITGL - news) will unite Zeus, which has been appointed to oversee a possible flotation of ‎the former restaurant empire of Sir Terence Conran, and Novum, a Mayfair-based market-maker.

If completed, the deal will be the latest in a string of mergers and takeovers involving City broking firms, the most recent of which was Panmure Gordon's purchase this year of Charles Stanley Gr‎oup's securities arm.

Stifel Financial (NYSE: SF - news) , a US-based group, bought Oriel Securities last year, while Cantor Fitzgerald has also been acquisitive in the London market.

The round of consolidation is being driven by a decline in secondary trading commissions and lower fees from corporate finance work.

Some brokers have, though, bucked the trend, with Numis Securities recently announcing impressive financial results to the City.

Novum is run by Hugh McAlister, a co-founder of Kaupthing Singer and Friedlander Capital Markets.

Neither Novum nor Zeus was available for comment.