JP Morgan bolsters carbon offset clout with EcoSecurities acquisition

The long-running acquisition saga surrounding carbon offset specialist EcoSecurities looks to have reached its final chapter, after the company announced that the latest takeover bid from JP Morgan-owned subsidiary Carbon Acquisition Company has become wholly unconditional.

EcoSecurities said that as of Friday, parties holding more than 80 per cent of the company's shares had accepted JP Morgan's £1.05 a share offer, which values the company at £129m.

The two companies added that they now expect the acquisition to be completed before the end of the year, at which point EcoSecurities will become a subsidiary of the banking giant, but will continue to operate as an independent operation and will retain its current brand name.

The move signals the end of a lengthy takeover saga that has seen EcoSecurities' board spend much of the last year fending off hostile takeover bids from Guanabara Holdings, a company set up by EcoSecurities' co-founder and former president, Pedro Moura Costa. Guanabara finally pulled out of the bidding war last month after its most recent 90 pence a share offer was exceeded by JP Morgan.

The deal will further strengthen JP Morgan's position in the fast-expanding global carbon market. The firm was one of the first mainstream investment banks to buy its way back into the sector with the acquisition of offsetting specialist ClimateCare in early 2008 and has since emerged as a major player in the global carbon market.

The acquisition of EcoSecurities will further strengthen its position, providing it with a portfolio of emission-reduction projects, as well as further carbon trading experience in both the voluntary and compliance markets, and consulting capabilities.

Blythe Masters, head of global commodities at JP Morgan, welcomed the deal, adding that the company's goal was "to ensure that EcoSecurities maintains its leadership position in the global carbon markets".