CMC Markets Confirms Plans of Splitting into Two Entities

London-listed CMC Markets (LON: CMCX) confirmed on Monday that the group is considering to separate its leveraged and non-leveraged businesses. However, the talks are still in the ‘very early stages’ as the board is still evaluating the merits of the separation.

“The Board intends to undertake an exploratory review to consider the viability of a managed separation of the Group‘s non-leveraged and leveraged businesses in the interests of maximizing shareholder value,” CMC’s official announcement stated.

“As these discussions are exploratory at this stage, they may or may not lead to a managed separation of these businesses in due course.”

CMC offers leveraged trading and spread betting services and operates in several global jurisdictions. The company decided to split the company, it would create a leveraged division consisting of the spreading business and the non-leveraged unit that will include technology and new investment products platforms.

As Sky News first reported, both the units will be listed on the London Stock Exchange, but only one will retain the CMC brand.