NEX Group Shareholders Approve CME Group's $5.3 Billion Offer
May 18 2018 - 7:16AM
Dow Jones News
By Ian Walker
NEX Group PLC (NXG.LN) shareholders have approved CME Group
Inc.'s (CME) $5.3 billion takeover for the U.K. company at the
general meeting earlier Friday, with 99.98% of proxy votes cast in
favor of the deal.
The U.K. financial-technology company agreed to the takeover by
the Chicago futures-exchange giant on March 29. Under the deal's
terms NEX Group shareholders will get 500 pence in cash and 0.0444
new CME shares. The offer valued each NEX share at 10 pounds
($13.49), based on CME's closing share price of $158.84 on March
28.
The deal is expected to be completed in the second half of
2018.
"We are delighted that the proxy votes of our shareholders have
overwhelmingly voted in support of our transaction with the CME," a
spokesman for NEX said in an emailed statement. An official
statement will be made later Friday.
"The deal is expected to complete in the second half of this
year and we are continuing to work with the CME to obtain the
necessary regulatory and anti-trust clearances," the spokesman
said.
NEX owns the biggest electronic platform for U.S. Treasury bonds
trading, called BrokerTec, while CME dominates the market for
interest-rate futures linked to U.S. government bond prices.
Combining the two would put CME in a powerful position, as it would
control the plumbing that underpins both Treasury futures and a
swath of the underlying "cash" market.
Alexander Osipovich contributed to this article.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
May 18, 2018 08:01 ET (12:01 GMT)
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