Commodities Markets in Merger Talks

Chicago Mercantile Exchange targets New York counterpart in $11B bid
By Jim O'Neill,  Newser Staff
Posted Jan 29, 2008 8:12 AM CST
Commodities Markets in Merger Talks
Traders on the floor of the New York Mercantile Exchange in New York, are seen in this March 21, 2007 file photo.    (Associated Press)

Owners of the Chicago and New York commodities exchanges are in preliminary talks that could end in an $11 billion merger of the two largest commodities markets in the US, reports the New York Times. NYMEX Holdings shareholders would receive $36 and 0.1323 of a share of CME's common stock in exchange for each NYMEX share.

The talks come on the heels of the July $11.7 billion union of the Chicago Mercantile Exchange and Chicago Board of Trade that created CME. Financial exchanges have been consolidating—to the tune of $53 billion in mergers since 2006—to broaden offerings and cut operating costs. CME is looking to NYMEX for its energy and metals trading presence. (More CME Group stories.)

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