CME Group Inc. (NYSE: CME) is reportedly ready to go after the London Metal Exchange. Bloomberg has reported that multiple bidders have become interested because the exchange controls somewhere around 80% of the world’s trading in metals futures. The value of the deal is said to the be around $1.3 billion.
Our question is just how on earth the CME would be able to snag the deal in this current regulatory climate. A committee is said to be reviewing the bids this week and next week.
What is interesting is that NYSE Euronext Inc. (NYSE: NYX) and Intercontinental Exchange (NYSE: ICE) may be bidding as well. With the recent failed deal between Deutsche Boerse AG (also a possible bidder), we wonder if regulators will clear a deal for any buyout by any new buyer that is already an established exchange if the market share is anywhere 80%.
JON C. OGG