A high-level Mercuria source told Reuters that Magid Shenouda, who was co-head of commodities for Goldman until the end of last year and helped build one of the strongest trading units among banks, had joined Mercuria.
is closing a $3.5 billion deal to buy the physical commodities trading business from another Wall Street giant, JP Morgan
"With the acquisition of JPM's
business we will substantially grow in size and are looking at a turnover of $130-$150 billion," the source said.
The co-founders of Mercuria
, Marco Dunand and Daniel Jaeggi, will focus on managing the company with emphasis on integration and client relations while Shenouda
will run trading.
was one of several recent senior departures from Wall Street's most famed commodity trader, which has said it is keen to keep the unit despite pressure from the U.S. Federal Reserve.
The Fed is conducting a review while U.S. lawmakers raise concerns that banks might abuse their roles in physical commodities markets, or that the businesses pose risks to their financial stability.
is the latest high-level recruit from a bank by Mercuria
, which has packed its senior ranks with former bank executives - unlike peers such as Glencore or Vitol
, which traditionally promote from within.
Shenouda joined Goldman in 1999 from privately held Swiss-based commodity trading house Trafigura, where he traded fuel oil.
went on to run Goldman's
European crude oil and products trading business, as well as European power and gas.
was made partner at the bank in 2008.
At the time of his
had been responsible for driving several acquisitions, as well as its expansion into coal, freight and emissions trading.