CME, Nymex shareholders approve deal
Monday August 18, 5:05 pm ET
CME set to close acquisition of New York Mercantile Exchange by Friday
NEW YORK (AP) -- CME Group Inc. on Monday said shareholders have approved the exchange's $9.4 billion acquisition of the New York Mercantile Exchange, and that the deal will close by the week's end.
In addition, the exchange said that preliminary results show that Class A members of Nymex Holdings Inc. are set to approve the deal.
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They threatened to block the deal after a recent securities filing suggested its $750,000 payment for each seat would be classified as income, which has a more unfavorable tax rate compared with capital gains.
CME Group will pay $3.4 billion in cash and about $6 billion in stock for Nymex Holdings. The deal is expected to close by Friday.
The combined company will continue to operate electronic and open-outcry trading platforms in both New York and Chicago, as long as the New York trading floor meets certain revenue and profit requirements, executives have said.
CME Group Executive Chairman Terry Duffy will remain in his post along with CME Chief Executive Craig Donohue. CME Group will add three Nymex directors to its board.
The deal gives CME a foothold into the fast-growing market for energy derivatives and access to new geographic areas. The New York Mercantile Exchange specializes in trading of energy and metals contracts, and has already partnered with CME to list some contracts on CME's electronic exchange.
Shares of CME fell $21.03, or 5.9 percent, to close at $336.64, while NYMEX dropped $2.16, or 2.6 percent, to finish at $79.95. |
