With African investors Helios Investment it recently paid a billion dollars to buy Shells fuel marketing operation across 14 West African countries, keeping the Shell branding. Fredriksens traders then hurriedly sold the physical crude at a loss, the CFTC lawsuit claims, ending expectations for tight supplies. With their connections and inside knowledge -- commodities markets are mostly free of insider-trading restrictions -- trading houses have become power brokers, especially in fast-developing Asia, Latin America and Africa. [7] Prior to this, Mercuria was assumed control of J&S Group, which was named after the Polish businessmen Gregory Jankilevitsch and Wiaczeslaw Smolokowski. The Chinese state is funding nimble trading firms to do its bidding. organisation Van der Velden took the reins of a company on a roll. After Minnesota-based Cargill built a huge soybean terminal on the banks of the Amazon River in 2003, it was targeted by Greenpeace and subjected to Brazilian government injunctions for allegedly encouraging more farming in fragile rainforest. Inside the lake office, as it is known, sits the chairman of Cargill Inc., one of the largest privately held companies in the world. Founded 25 years ago by Briton Richard Elman, the Hong Kong-based, Singapore-listed Noble Group buys and sells everything from Brazilian sugar to Australian coal. Cognite Data Fusion Deployed for Data Management in Oil & Gas and Power. The report also details sales by a foreign Koch subsidiary of petrochemical equipment to Iran, which is subject to U.S. sanctions, and a history of criminal or civil penalties for oil spills, a deadly 1996 U.S. pipeline blast, and under-reporting of emissions of benzene, a carcinogen, from a Texas refinery in 1995. Glencores flotation has sparked speculation about a possible Vitol initial public offering and what it would be worth. Together, Glencore employees, including many of its top traders, own just under 80 percent of the company. By and large they move as a team, says one retired wheat trader who did business with Cargill for decades. university In the early 2000s, the Brent crude oil stream -- used as a global price benchmark -- fell to 400,000 barrels per day from more than 1 million in the late 1980s. Headquartered in Geneva, Switzerland, and named after Mercury, the god of merchants, Mercurias business straddles global energy markets. It announced in early October that it may float its storage subsidiary Puma Energy within 18 months. The three top executives at Mercuria have increased their holding in the Swiss-based commodity trader since the start of the year, according to a filing with US regulators. [4] The group operates in 50 different countries. Koch declined to discuss its trading with Reuters. Arcadias chief executive in Singapore, Stephen Gibbons, denied the contents of the cable and told Reuters the kidnapping allegations were ludicrous. A fiercely libertarian ideology and ultra-competitive engineering prowess live on at Koch Industries spartan headquarters in Wichita, Kansas, a former Koch executive told Reuters. Executives of Illinois-based ADM, formerly Archer Daniels Midland, were jailed for an early 1990s international price-fixing conspiracy for animal feed additive lysine. In 2006, J+S was raided by the Polish authorities in connection with an investigation into oil trading in Poland. (Additional reporting by Jean-Francois Rosnoblet), WHO: Bunge, founded 1818 by Johann Peter Gottlieb Bunge in Amsterdam. Hes well on the way. WHO: Noble Group, founded 1986 by UK scrap metal man Richard Elman. The JPMorgan unit employs about 600 and represents a range of assets assembled over decades by firms including Bear Stearns Cos. and RBS Sempra, which the bank bought during an acquisition binge beginning in 2008. Youve always had grain going down the river and going through the Gulf and being exported. In the wake of Glencores listing this year, there is interest in another big trading house going public; investors want exposure to long-term demand for commodities. [3] Unsuccessful talks have taken place with Singaporean commodities group Olam International Ltd, while bankers say they have been sounded out about a stock market listing. Revenues for the 10 largest investment-bank commodity businesses fell to $4.5 billion in 2013 from $14 billion in 2008, according to London-based analytics company Coalition. or But Cargill is anything but public. Mercuria's Marco Dunand talked to S&P Global Platts about the challenges, implications, and opportunities that the coronavirus pandemic presents across all the key commodity classes in a time of unprecedented volatility in the global markets. There has always been some concern about the trading firms influence, said Craig Pirrong, a finance professor and commodities specialist at the University of Houston, who points out that some firms have been associated with allegations of market manipulation. Thats still a lot less than the billions the biggest independent oil traders make and a long way off the revenue of Marquard & Bahls oil tanking division, the second largest in the world after Vopak. In 2011 the company will turn over $80 billion, up from just $5 billion in 2004. Vitol says it is happy with its private status and has no IPO plans. Despite not being on the registry, Bunge continues to export grains and agricultural products as usual, but it cannot cash in on certain tax benefits and it faces hurdles transporting goods within Argentina, which analysts say could hurt the companys bottom line. It has trading offices in China, palm plantations and chemical plants across Asia, and silos in Brazil. As usual, details are scant. Glencore has said publicly it would see good value in a merger with Xstrata, but that has so far been rejected by other, smaller, shareholders. But earlier this year the worlds wealthiest oil trader raised that profile, and did its reputation no harm, by becoming the first to deal with Libyas rebels, long before the overthrow of Muammar Gaddafi. Timchenko doesnt need to be told to keep a low profile. One of their secrets: filling the empty barges headed home. It also has a substantial presence in Asias fuel oil market, the worlds largest. [23][24], In 2019, Mercuria acquired bankrupt Aegean Marine Petroleum Network Inc and restructured the company to operate as Minerva Bunkering, a leading global physical supplier of marine fuels and a fully-owned subsidiary of Mercuria Energy Group Limited. When in Wichita, he often dines in the Koch cafeteria. In a May interview with Reuters, Fredriksen refuted the charges and shot back that maybe they (U.S. regulators) are trying to get some revenge for the 2010 BP oil spill in the Gulf of Mexico. Its early dealings with the Libyan rebels may offer the chance of a foothold in Libyas oil and gas territory. Which may be why Mabanaft wants to expand beyond its northern European heartland. In metals, stock in warehouses can be tied up for years as loan collateral, allowing the same traders who dominate the metals market to control a huge chunk of world supply -- an apparent conflict of interest that has drawn criticism from the UK parliament. But ADMs reputation has endured a black eye or two over the years. You may change or cancel your subscription or trial at any time online. Last year he surprised the market when he trumped Chinas Bright Food in a $1.5 billion deal to buy Australias Sucrogen. If you dont offer competitive terms, no one will work with you, he told a Russian daily this month. Several of Fredriksens traders worked for BP in the early 2000s, where aggressive oil trading at Cushing turned huge profits, and also led to BP paying fines for alleged trading violations. Vitols early running gave the firm an edge with the countrys new political stewards. You were always a little worried, taking the other side of their trades, said one European oil product trader, who declined to be identified. Mercuria Closes Acquisition of J.P. Morgan Chase Physical Commodities Trading houses have huge volumes of proprietary trading. I would love for them to be listed on the stock market, said Gertjan van der Geer, who manages an agriculture fund for Swiss bank Pictet. In his only media interview, with Reuters in 2006, Lim credited his success to investment in his tanker armada -- the secret weapon that helped him set up stealthy and profitable deals in the 1990s -- and his philosophy of perseverance. Theres a great deal of trust between them.. Top three executives lift stake in Mercuria | Financial Times A fleet of tankers and Asias largest commercial storage facility are among the companys assets. Analytical and operational solutions to navigate complex, volatile markets. In some cases it makes up 60-80 percent of what they do, said Carl Holland, a former price risk manager at oil major Chevron Texaco, who now runs energy consultancy Trading Solutions LLC in Connecticut. It has grown into the worlds third-largest independent oil trader and second-largest industrial metals trader in less than 20 years, since it was set up in the early 1990s by Dauphin and fellow traders Eric de Turckheim and Graham Sharp. Introduction - Mercuria Corporate Social Responsibility Tea Party movement. 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In two decades the Bangalore-born trader has built Olam into a $4.5 billion company involved in around 20 different commodities including coffee, cocoa, rice, grains and sugar, from a startup that sold Nigerian cashew nuts. A profile in the New Yorker magazine last year identified the brothers as behind-the-scenes operators who bankroll the U.S. Since co-founding Mercuria with partner Marco Dunand in 2004, the company has ballooned into one of the top four commodity trading houses in the world, turning over more than $100 billion in. With global sales of $108 billion in 2010, Cargill would have ranked No. U.S. regulations are now pending to limit banks proprietary trading -- speculating with their own cash. WHO: Trafigura, founded 1993 by former Marc Rich traders Claude Dauphin, Eric de Turkheim and Graham Sharp. A management shake-up this year at Frances most popular football club, Olympique Marseille, offers more proof of Margarita Louis-Dreyfus determination to defend her husbands legacy and impose hard financial choices. Gunvors oil dominance has waned in the past two years -- it is handling around a fifth of Russian seaborne oil exports, down from a third three years ago. Thats equal to the combined oil exports of Saudi Arabia and Venezuela. And unlike commodities producers, such as U.S. oil giant Exxon Mobil, trading firms dont just make money when prices go up. 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The suit was settled out of court for an undisclosed sum. Mercuria was nearing the sale of an equity stake of 10 percent to 20 percent to Chinese sovereign wealth fund State Development & Investment Co., according to two people familiar with the matter. Scale is going to be more important than ever.. Arcadia often trades large volumes of oil from Nigeria and Yemen, where it boasts close relationships with state oil firms. We also believe that nature is going to have to play its role in the transition, because when the world talks about net zero, it doesn't mean absolute zero. MARCO DUNAND, CEO OF MERCURIA ENERGY TRADING. tracking emerging trends and opportunities in the future of energy. Pre-tax income for its parent company Marquard & Bahls was $274 million, up from $252 million the previous year. Some transgressions make headlines. Arcadia doesnt make its revenues public. Argentinas tax office is investigating dozens of other agricultural exporters as well. GENEVA, 3 October 2014 -- Mercuria Energy Group, Ltd ("Mercuria") announced today it has successfully completed the acquisition of J.P. Morgan Chase & Co. ("J.P. Morgan") Physical Commodities Business, following the signing of a definitive Purchase and Sale Agreement in March of 2014. Founded in 1988 by Japanese trading giant Mitsui Inc., it was sued in 2000 by independent US refiner Tosco for allegedly conspiring to jack up prices of European benchmark Brent oil by cornering part of the North Sea physical crude market. Electronic Invoice exchange and reconciliation for faster payments/settlements. We support credit card, debit card and PayPal payments. Compared with other independent trading houses, Dunand and Jaeggi are high profile, speaking periodically to the press and giving regular interviews. I have known the citizen Timchenko for a very long time, since my work in St Petersburg, Putin told a group of Russian writers. It was done a long time ago. Together, they are worth over a trillion dollars in annual revenue and control more than half the world's freely traded commodities. He is flanked in the top investor table by the youthful heads of Glencores major divisions. Companies like Hong Kong-based Noble and Singapores Olam and Hin Leong are not new, but they are spreading their wings as Chinas influence in commodities markets increases. From 2011 to 2013, Mercuria hired 570 people, including key executives from investment banks as it expanded beyond energy. They are better together than they are on their own. It hasnt been determined whether Blythe Masters, who has led the JPMorgan unit since 2006 and orchestrated the buying spree, would join Mercuria, a senior executive at Mercuria said. ENERGY TURNOVER: $75 billion 2011 company estimate (2010, $47 billion). The godfather of oil trading, Marc Rich, taught one of his most talented apprentices Claude Dauphin almost every trick in the business. Commodities other than oil now represent more than 50 percent of revenue, which totaled $98 billion in 2012 and generated $343 million in profit, according to financial statements seen by Bloomberg. U.S. refiner Tosco sued Arcadia and Glencore for market manipulation; the case was settled out of court. The scandal has hardly hampered the firms stellar growth. He competed fiercely with Indonesias Salim group, the business group commanded by his uncle, and won, to dominate the edible oil market in the worlds most populous nation. Their move to run their own empire came in 2004 when they founded Mercuria, raising capital from two Polish businessmen, Grzegorz Jankielewicz and Slawomir Smolokowski. Its website reveals little more than that it is the trading arm of privately owned oil company Marquard & Bahls. WHO: Koch Industries, founded 1920s by Fred Koch. After a newspaper interview he wrote an open letter in 2008 headlined Gunvor, Putin and me: the truth about a Russian oil trader. Its a model it has replicated across various commodities. ADM was fined $100 million by the U.S. government for antitrust violations. Thats the argument of Sunny Verghese, chief executive of Singapore-based trading firm Olam International. 100% Granted (3 out of 3) 0% Denied ( out of 3) 0% Withdrawn ( out of 3) 0% Certified-Withdrawn ( out of 3) This data was calculated using publicly sourced data from OFLC Performance Data. [8][9] They and their affiliates joined as founders of Mercuria, and they remain as shareholders today. Mabanaft sold 20 million tonnes of oil in 2010, up from 18 million tonnes in 2009. In a settlement, Trafigura agreed to pay a $5 million fine, but wasnt charged with smuggling and denied wrongdoing. Beyond Arcadia, Fredriksens stable of commodities-related firms includes MarineHarvest, a global salmon-farming conglomerate billed as the worlds largest seafood company. He also owns oil tanker operator Frontline, U.S. oil trader Parnon -- also named in the CFTC lawsuit -- energy driller Seadrill and gas distributor Golar LNG. A master of physical markets, it owns a 4,000-mile U.S. pipeline network and three of the countrys most profitable refineries. Trafigura said it entrusted the waste to a state-registered Ivorian company, Tommy, which dumped the material illegally at sites around Abidjan. He has made a fortune. Risk has often paid off handsomely for Fredriksen. Having said that, we have also been approached by potential investors -- sovereign funds and others -- who wish to make a private-equity type of investment in our company.. WHO: Arcadia, founded 1988 by Japans Mitsui & Co. Arcadia Petroleum, the London-based oil trading firm owned by billionaire oil tanker magnate John Fredriksen, was thrust into the spotlight in May when U.S. commodities regulators sued it for allegedly manipulating U.S. oil markets in 2008. The companies dispute the charges. Asked to comment, Cargill said the company actively backs free trade to boost agriculture in all countries and is in dialogue with many important audiences, including governments Additionally, we dont believe export bans are the solution to either high grain prices or price volatility. ADM declined to comment and a spokesman for Bunge could not be reached. Nobles shareholders include Chinas sovereign wealth fund, China Investment Corp., which bought an $850 million stake in 2009, and Korean Investment Corp., which has a minority stake. I never interfered with anything related to his business interests, I hope he will not stick his nose into my business either, Putin said. We have a daily sales report from every corner where we operate and if we see sales slowing over a few weeks, we get to know the changing trend before others, one employee said, on condition of anonymity. The China connection continues. That took the headcount to 1,200 from about 10 in 2004. Mercuria is just seven years old, but is already one of the worlds top five energy traders. Commodity trading is fraught with various types of risk. NEW YORK (Reuters)- For the small club of companies who trade the food, fuels and metals that keep the world running, the last decade has been sensational. In his first public interview to Reuters in 2007, Gunvors Swedish co-founder Tornbjorn Tornqvist was keen to stress that the firms success was built on its traders experience and excellent contacts.
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