US greenlights CME's purchase of NEX Group

Business 10/12/2018, 9:28 PM
US greenlights CME's purchase of NEX Group

CME Group Inc. received the goahead from the Department of Justice in Washington for the takeover of NEX Group Plc, United States government bond trading marketplace run by billionaire Michael Spencer. The clearance was given under the Hart-Scott-Rodino Act, the companies announced on Friday.

Each share of the target is agreed to be paid £5 in cash and 0.0444 shares of the Chicago-based options and futures exchange operator, currently worth $7.77, equivalent to £10.9 per share in total or £4.25 billion. Green lights were also given in Germany, Italy and Sweden, while the two entities said they have given requisite prenotifications in Hong Kong. They stuck with the estimate that the acquisition would go through by the end of the year, as they expect an answer only from the Competition and Markets Authority of the United Kingdom.

NEX, headquartered in London, controls the majority of the electronic trade in US Treasuries and has a strong position in foreign exchange trading.

Breaking the News / IT

Share:

US SPX 500 In...+2.62%

2,816.42
Chart for: US SPX 500 Index

CME GR.+2.44%

178.0600
Chart for: CME Group Inc.

STOXX Europe ...+1.58%

364.99
Chart for: STOXX Europe 600, EUR (Price)

Nex GR. ORD 1...+0.96%

1,055.0
Chart for: Nex Group PLC ORD 17.5P