London Metals Exchange Bid Possibilities: ICE, NYSE, CME, and Others (CME, ICE, NYX)
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…
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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
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
