Nomura is beefing up its commodities business with the purchase of Nexen Energy, a European natural gas and power trading unit of Canada's Nexen Inc.
The deal, reported by the Financial Times to be worth $55 million, gives Nomura greater exposure in the commodities sector. Nomura said that Nexen's assets will complement its existing commodities business. The move also fits nicely with Nomura's global ambitions, further illustrated by the Japanese bank's purchase of some Lehman Brothers assets in October 2008 after Lehman declared bankruptcy.
With banks losing revenues from areas such as investment banking and merger-and-acquisition consulting, the fast-growing commodities business is looking increasingly more attractive.