Intercontinental Exchange (ICE) has
entered into a definitive merger agreement to acquire New York
Board of Trade (Nybot) for a consideration of around $1bn,
comprising 10.297m shares of ICE common stock and $400m in
cash. Nybot would become a wholly-owned subsidiary of ICE,
according to a joint statement released by the
Speculation had been mounting in recent
weeks over a potential ICE/Nybot deal with a Nybot board
meeting called on 14 September. In announcing the acquisition,
Jeff Sprecher, ICE chairman and CEO confirmed ICE's interest in
Nybot's clearinghouse. "The combination of two global and
rapidly growing commodity marketplaces, together with a highly
respected clearinghouse, allows us to expand ICE's offerings
for market participants, as well as create long-term
shareholder value," he said.
Most observers said they saw value in ICE
wanting Nybot's clearing facility but less value in the New
York exchange's product suite. "I think the idea of ICE and
Nybot makes sense in terms of clearing but historically ICE
hasn't shown any interest in products traded on Nybot. As a
product fit I just don't see it, but that's not to say it
wouldn't sell off the products to another exchange." said Clive
Furness, MD of commodity consulting firm Contango
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