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 exchanges.
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 Markets.
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