The transaction will enable REFCO and CIS to consolidate strategies that focus on providing global clients with non-conflicted access to exchange-traded derivative and related brokerage markets.

"We are delighted by the agreement REFCO has reached with Cargill Investor Services," said Phillip Bennett, President and Chief Executive Officer of REFCO. "We have always had the greatest regard for the CIS team and their business model, which is highly complementary to our own. The combined operations of REFCO and CIS will provide our clients with enhanced capabilities in markets that are of increasing importance globally. We are particularly proud to now include Cargill among our major clients."

"Moving the CIS business to REFCO fits well with REFCO's intent to expand its business and represents the best opportunity for CIS to continue its long- term growth and development," said Warren Staley, Chairman and Chief Executive Officer of Cargill. "We know that our customers will be well served because REFCO's commitment to client service is consistent with the level of service that our customers have come to know and expect from CIS as a Cargill company. As further illustration of our confidence in REFCO, Cargill has entered into a long-term agreement to have them provide clearing services to Cargill businesses that currently use CIS."

The transaction is expected to close in one to two months, subject to Hart-Scott-Rodino and other regulatory clearances. The transaction is also subject to contractual closing conditions.