New brokerage with Avior deal

[fusion_builder_container hundred_percent=”no” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” overlay_color=”” video_preview_image=”” border_size=”” border_color=”” border_style=”solid” padding_top=”” padding_bottom=”” padding_left=”” padding_right=””][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” border_position=”all” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” center_content=”no” last=”no” min_height=”” hover_type=”none” link=””][fusion_text]AVIOR Research, a Cape Town-based equity-research group, is to merge with Groombridge Securities, creating a brokerage to cover more South African stocks than any other brokerage.
 
The combined company will keep the Avior Research name and employ more than 30 people covering more than 100 South African stocks, and 20 “pan-African” groups, Avior director Kevin Mattison said yesterday.
 
No money will change hands as part of the transaction.
 
The number of companies offering equity research in SA has soared as growth on the continent outpaced that in developed nations. There are now 17 analysts providing coverage of SA’s largest retail bank, Absa, according to Bloomberg data, up from 10 a year ago. ING Wholesale Banking, SBG Securities and Legae Securities have entered the South African market over the past year. BNP Paribas, France’s largest bank, is poised to join them after buying a controlling stake in Cadiz Holdings ‘ securities business.
 
“The combined group will now be able to expand internationally through new partnerships,” Mr Mattison said. Avior already had alliances with US-based Auerbach Grayson & Company and Espirito Santo Investment Bank, he said.
 
Espirito’s partnership with Avior would help it better serve institutional clients in emerging markets and would position Espirito “to explore the new trade flow opportunities between Africa, Latin America and Asia”, Jose Maria Ricciardi, head of Espirito Santo Investment Bank, said yesterday.
 
Avior Research was founded in 2005. Peter Coutromanos, who started the company, is also a shareholder in Groombridge, which started operations in 2008, according to Mr Mattison.
 
“The merger will allow the companies to offer an integrated research, sales and trading platform,” he said.
 
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