Hong Kong exchange to takeover LME for 1.4 billion pounds
"LONDON (BullionStreet): The London Metals Exchange (LME) has said that it recommended acceptance of an all-cash 1.39 billion pounds (US$2.16 billion) offer from the Hong Kong stock exchange (HKex), bringing an end to speculation about which bid the LME would accept.
The parties said the move would combine “the world’s leading non-ferrous base-metals exchange trading venue with the leading operator of exchanges and clearing houses in Asia”. Under the agreement the LME would not lose its open outcry trading, contract or membership systems, and would continue to be based in the UK.
The transaction is expected to be completed during the fourth quarter of 2012.
HKex chief executive Charles Li stated,“The acquisition of LME Holdings represents a unique opportunity for us to acquire in one strike a position of global leadership in the commodities market.”
“This is consistent with our strategy to expand beyond equities and equity derivatives,” he said"...
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