29th April 2014 – Reuters
Privately-owned Reuben Brothers Resources Group (RBRG) said on Tuesday it had agreed to sell its metals trading division to commodity trader Gerald Group, for an undisclosed amount.
Real estate and commodity tycoons David and Simon Reuben, founded RBRG Trading Limited, previously known as Metalloyd, in 2001 to trade in steel and steelmaking raw materials.
They decided to sell the metal trading branch to focus their investment business on the natural resources and logistics sectors.
Betting on an upturn in the shipping market, RBRG has already ordered construction of about seven drybulk vessels which it intends to manage itself, an industry source said.
“The Reuben Brothers shall continue to deploy capital across a diverse portfolio of commodities and value chain segment, with particular focus on shipping investments, natural resources and private equity,” RBRG said in a statement, without disclosing the details of the deal.
Together with Barclays Capital Metalloyd set up its own London Metals Exchange-approved metals warehousing company, Erus Metals, in 2011. The Reubens’stake in Erus has also been sold to Gerald Metals.
The Gerald Group will integrate the entire RBRG Trading business with its own staff. Mel Wilde, previously managing director of Metalloyd, will lead the new division, which will start trading as part of the Gerald Group on May 1 from Millbank Tower, the central London headquarter of RBRG.
RBRG’s existing offtake contracts will be added to the Gerald Group’s existing portfolio of long-term financing, off take and sales agreements with producers and customers, RBRG said.
The Gerald Group, which says it has more than $3 billion in assets and $10 billion in turnover, is aiming to expand rapidly the new business unit to handle more than 10 million tonnes of iron ore and to trade significant quantities of steel and other steel-making raw materials.
The Gerald Group had started trading iron ore recently from a desk based in Switzerland.