Leucadia National Corporation LUK recently announced two transactions involving its wholly owned subsidiary, Jefferies Group LLC. Partially driven by these transactions, the company’s share price edged up 0.5% to $23.00 on Apr 9, 2015.
As disclosed, Jefferies Group LLC acquired Faros Trading, LLC for an undisclosed amount. The latter was the institutional foreign exchange brokerage subsidiary of FXCM Inc. FXCM. The acquired assets will be merged with Jefferies’ existing foreign exchange brokerage business, facilitating deeper penetration into the markets.
Also, Jefferies Group LLC signed a definitive agreement to sell majority of the futures activities of its Bache business to Societe Generale S.A. The firm anticipates incurring one-time after-tax expense of approximately $66 million (including $23 million of non-cash charges) related to the winding up of Bache business’ futures activities. Also, the company expects the disposition to prove accretive to its earnings in the quarters ahead. Subject to customary closing conditions, the transaction will close in second-quarter 2015.
Jefferies was merged with Leucadia in Mar 2013 to form a limited liability company, Jefferies Group LLC. It handles Leucadia's investment banking and capital market operations. Revenues generated from this business accounted for 26% of Leucadia’s total revenue in fourth-quarter 2014.
Leucadia currently has a market capitalization of $8.4 billion. The company is primarily engaged in beef processing, manufacturing and real-estate activities, along with various other investment-related affairs in the U.S.
Some major players in the diversified operations industry include Compass Diversified Holdings CODI and Carlisle Companies Incorporated CSL, both carrying a Zacks Rank #2 (Buy).
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