ICAP PLC (Reuters) - German regulators have approved interdealer broker Tullett Prebon's (>> Tullett Prebon Plc) proposed acquisition of ICAP Plc's (>> ICAP plc) hybrid voice broking business, removing a key regulatory hurdle to create the world's largest voice broker, a source with knowledge of the matter said.
The source added, however, that the 1.11 billion pound ($1.38 billion) deal still required regulatory change of control consents.
Tullett agreed to buy the business last year, a move that would enable it to compete better in a sector where trading volumes have shrunk.
The proposed deal, however, faced some regulatory hurdles.
Concerns raised by Britain's competition watchdog prompted ICAP to offer to sell its London-based oil desks, while the U.S. Department of Justice was concerned about the shareholding and governance arrangements.
The deal has, however, received the green light from Britain's financial regulator, the U.S. Department of Justice and the British Competition and Markets Authority.
Tullett told Reuters this month that it was working with over 30 regulators globally to secure approval for the deal, which it hopes to close before the end of 2016.
ICAP and Tullett declined to comment when contacted by Reuters.
The Financial Times reported the German regulatory approval earlier on Tuesday. http://on.ft.com/2gEka0n
Tullett's shares were up 1.8 percent at 437.8 pence at 0846 GMT, while ICAP was down 1.30 percent at 483 pence.
($1 = 0.8059 pounds)
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Sunil Nair)
By Noor Zainab Hussain
