Marex Expands into Cobalt Trading with Acquisition of Darton Commodities

Buyer: Marex Group (MRX.O), a London-based financial services and commodities brokerage.
Target: Darton Commodities, a UK-based trader specializing in cobalt metal for aerospace, defense, and high-tech applications.
Timing: Deal closed in March 2024 (exact terms undisclosed).
Strategic Fit: Expands Marex’s physical metals trading beyond copper, nickel, and aluminum into battery and defense-critical cobalt.

💰 Financials:
- Marex’s Q1 results hint at a “bargain purchase gain” (est. -3.4Mto−3.4Mto−6.1M impact).
- Adjusted pre-tax profit guidance: 92.3M–92.3M–97.3M.
📍 Location: Darton’s HQ moved to Marex’s London office (155 Bishopsgate) post-acquisition.
📈 Cobalt Market Context:
- Prices surged ~60% since February (16/lbor∗∗16/lbor∗∗35,270/ton**) after DR Congo export suspensions.
- Critical for EV batteries, missiles, and aerospace alloys.

Marex’s Growth Strategy:
- Follows recent buys like Tangent Trading (recycling) and Edgemere Terminals (logistics).
- Strengthens physical metals vertical alongside derivatives trading.
Cobalt’s Geopolitical Edge:
- Darton’s expertise in defense supply chains aligns with NATO’s push to secure critical minerals.
- Congo’s export curbs highlight supply chain risks—Marex gains a hedged position.

Integration: Marex may leverage Darton’s military/aerospace clientele for cross-selling.
Price Volatility: Cobalt’s rally could continue if Congo tensions persist or EV demand rebounds.
Regulatory Scrutiny: Defense-linked cobalt trades may draw export control oversight.