Deals and IPOs

CME Finalizes Deal to Buy NYMEX for $9.4 Billion


CME Group, the world's largest derivatives exchange, Monday forged a definitive agreement to buy energy and precious metals mart NYMEX for about $9.4 billion.

The deal marks the latest merger in the quickly consolidating U.S. and global financial exchanges.

CME Group was created in July 2007 when Chicago Mercantile Exchange Holdings bought the Chicago Board of Trade. NYMEX , or the New York Mercantile Exchange, is the world's largest physical commodity futures exchange with more than 130 years of trading history.

The terms of the deal remained unchanged from CME's original bid on January 28, but the overall price tag dropped from the original $11 billion offer due to the fall of CME's stock price.

Each share of NYMEX will be exchanged for 0.1323 shares of CME Class A common stock and $36 in cash. That values NYMEX at about $100.30 per share.

NYMEX trades an array of energy contracts, including crude oil, gasoline, natural gas and electricity, and precious metals such as gold, silver and copper through its Comex division.

CME strengths lie in interest rates, foreign exchange, stock index and agricultural commodities such as grains and livestock.

The merger is expected to generate about $60 million in cost savings and additional growth opportunities, CME said. CME said it would multiple venues for trading, including trading floors in Chicago and New York, clearing on the NYMEX ClearPort platform, as well as electronic trading on CME Globex.

The combined company will continue to operate a trading floor in New York City as long as certain revenue and profits targets are met, CME said.