雅虎香港財經 Marsh & McLennan (MMC) Unit Buys Commodity Trading Firm
The global management consulting arm of Marsh & McLennan Companies, Inc. MMC, Oliver Wyman, recently inked a deal to purchase the commodity trading advisory firm, Veritas Total Solutions. The acquisition is expected to be finalized in the third quarter of 2024. The Veritas team members will be part of Oliver Wyman and will be based in a key center of the energy industry, Houston, TX.
The deep expertise that Veritas has in risk, systems, analytics and AI is expected to strengthen the capabilities of Oliver Wyman in offering comprehensive trading advisory and systems implementation services. This, in turn, may benefit commodity trading companies with exceptional trading optimization expertise.
The latest move seems to be a time opportune one as present commodity trading enterprises must utilize the latest insights and technologies to stay competitive, owing to the evolving market complexities.
Initiatives similar to the latest one highlight the efforts of Oliver Wyman, a part of Marsh & McLennan’s Consulting segment, to upgrade its services suite and presence across the globe. The entrepreneurial spirit, extensive knowledge of commodity markets and proven client impact of Veritas make it a valuable addition to Oliver Wyman.
An enhanced services portfolio is likely to fetch more clients to the MMC sub-unit and provide an opportunity for it to earn more revenues. This, in turn, is expected to contribute to the overall top line of MMC. Oliver Wyman accounted for around 12% of the company’s total revenues in the first quarter.
This sub-unit boasts specialized expertise in strategy, operations, risk management and organization transformation based on which it provides advisory services to a diversified client base belonging to automotive and manufacturing, communications, media & technology, energy and natural resources, financial services, insurance and asset management, health and life sciences, public sector, private capital, retail & consumer goods, and transportation services space.
Similar to the Oliver Wyman unit, the other three subsidiaries of Marsh & McLennan, Mercer, Marsh and Guy Carpenter, continue to pursue strategic acquisitions to expand product offerings and strengthen MMC’s global presence. The parent company spent $301 million on buyouts in the first quarter.
A few days before the latest move, the Mercer sub-unit entered into a deal to acquire Cardano, a long-term savings specialist operating mainly in the UK and the Netherlands, for upgrading the insurer’s offerings in the Wealth business. In June 2024, Marsh McLennan Agency (MMA), a division of Marsh, closed the buyout of Mississippi-based Fisher Brown Bottrell Insurance, Inc., as a means to solidify the presence of MMA in Mississippi, Alabama and Florida.
Shares of Marsh & McLennan have gained 16.8% in the past year compared with the industry’s 8.6% growth. MMC currently carries a Zacks Rank #3 (Hold).
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Stocks to Consider
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Shares of Allstate, Brown & Brown and NMI have gained 43.7%, 39% and 28.2%, respectively, over the past year.
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