TP Icap takes legal action over Nex Group deal

Broker TP Icap is taking legal action against trading business Nex Group over claims that it broke the terms of a deal.

TP Icap was formed in 2016 when Tullett Prebon took over Icap’s voice broking business. The rest of the company was renamed Nex Group.

TP Icap has accused Nex of breaking a warranty that promised the business was not exposed to any significant litigation, according to the Sunday Times.

The business told staff they were entitled to incapacity benefits up to the age of 65 if they needed to take more than six months off work due to illness, however the cut off age was actually 55.

This meant staff had “actual or potential legal claims”against the business when the takeover deal was signed, and TP Icap has identified workers owed total benefits of £15m, the Sunday Times reported.

Nex Group was bought by US derivatives marketplace CME Group last month in a deal worth $5.5bn.

The deal, which was first announced in March, dodged an investigation by the Competition and Markets Authority.

Former Conservative Party treasurer and Nex Group boss Michael Spencer earned an estimated £670m for his stake in the business.

City PM has contacted Nex Group for comment. TP Icap declined to comment.