CME at it again:
CME Group in talks to buy Nymex for $11 bln
http://www.reuters.com/article/rbssF...45912620080128
NEW YORK, Jan 28 (Reuters) - CME Group Inc (CME.N: Quote, Profile, Research) is in preliminary discussions to buy Nymex Holdings Inc (NMX.N: Quote, Profile, Research) for roughly $11 billion, the companies said in a joint statement on Monday.
Under the terms being discussed, CME, the parent of the Chicago Mercantile Exchange, would pay Nymex shareholders $36 in cash and 0.1323 of a CME common share for each Nymex share owned.
Based on CME's closing price on Friday, the preliminary offer values Nymex shares at roughly $119.22 each, an 11 percent premium to Nymex's closing share price on Friday.
The companies said they have agreed a 30-day exclusive negotiating period, according to the statement.
"Everyone expected a merger with someone at some point," said Tom Bentz, an analyst with BNP Paribas.
Nymex shares were up 6 percent in early trading to $113.95, and CME Group shares were up 2 percent at $642.50.
CME Group said the preliminary terms would see it maintain trading floors in the New York City area, according to the statement. Nymex would also repurchase 816 New York Mercantile Exchange memberships upon the deal's closing for a total price not to exceed $500 million, the statement said. (Reporting by Lilla Zuill, additional reporting by Janet McGurty, editing by Gerald E. McCormick and Steve Orlofsky)
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While exciting to watch all that the CME is capable of, where exactly is this train headed? .....
Soon it will be CME vs. NYSE vs. Nasdaq. Everything else will be gobbled up sooner or later.
The question is, is that a good or bad thing for the retail trader and investor? I love the CME and their platforms, but if they are the only game in town, they can easily dictate fee structure. Almost the definition of a monopoly, right?
