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ICE to acquire NYSE Euronext

Posted on Dec 22, 02:04PM | IBNS

Leading operator of regulated futures exchanges, Intercontinental Exchange (ICE), is all set to acquire NYSE Euronext, which is the parent of the New York Stock Exchange.

NYSE Euronext is being sold to ICE for USD8.2 bn.

"IntercontinentalExchange (NYSE: ICE), a leading operator of global markets and clearing houses, and NYSE Euronext (NYSE: NYX), the preeminent global equity, equity options and fixed income derivatives market operator, today announced a definitive agreement for ICE to acquire NYSE Euronext in a stock-and-cash transaction," ICE said in a statement.

"The acquisition combines two leading exchange groups to create a premier global exchange operator diversified across markets including agricultural and energy commodities, credit derivatives, equities and equity derivatives, foreign exchange and interest rates," it said.

Speaking on the agreement, ICE said: "Under the terms of the agreement, which was unanimously approved by the Boards of both companies, the transaction is currently valued at USD33.12 per NYSE Euronext share, or a total of approximately USD8.2 billion, based on the closing price of ICE's stock on December 19, 2012."

ICE said NYSE Euronext shareholders will own approximately 36pc of ICE shares post-transaction.

"The transaction is expected to close in the second half 2013, subject to regulatory approvals in Europe and the U.S. and approval by shareholders of both companies," ICE said.

"ICE is committed to preserving the NYSE Euronext brand. ICE will maintain dual headquarters in Atlanta and New York. New York headquarters will be located in the Wall Street building, home to the iconic trading floor. ICE will also open a new midtown Manhattan office in June 2013," it said.

ICE said it is 'also committed to maintaining the position of NYSE Liffe in London as a leading international market operator for derivatives products, including its benchmark interest rate complex'.

Jeffrey C. Sprecher will continue as Chairman and CEO of the combined company.

Duncan L. Niederauer will be President of the combined company and CEO of NYSE Group.

Four members of the NYSE Euronext Board of Directors will be added to the ICE Board of Directors which will be expanded to 15 members.

"Our transaction is responsive to the evolution of market infrastructure today and offers a range of growth opportunities, while enhancing competition in US and European markets and broadening our ability to address new markets and offer innovative products and services on a global platform," said ICE Chairman and CEO Jeffrey C. Sprecher.