×

UPDATE 1-ICE to sell trading platform Trayport to TSX owner

(Adds details from the release, background)

Oct 27 (Reuters) - Toronto Stock Exchange owner TMX Group Ltd said on Friday it would buy Trayport, a London-based energy trading software firm, from Intercontinental Exchange Inc for C$931 million ($723 million).

ICE, owner of the New York Stock Exchange, said in July it would sell Trayport after losing an appeal of a decision by Britain's competition watchdog that asked for a divestment to preserve competition in the utility derivatives trading industry.

The regulator contended that traders, brokers, exchanges and clearing houses that compete with ICE in the trading and clearing of European utilities, depend on the Trayport platform to carry out these transactions effectively.

The regulator, the UK Competition and Markets Authority (CMA), has approved the sale of Trayport to TMX Group.

TMX said the National Bank of Canada is providing a loan of C$650 million to fund the deal, which it expects will add to its adjusted earnings per share in 2018.

TMX also said it would sell Natural Gas Exchange Inc and Shorcan Energy Brokers Inc to ICE in a deal valued at C$339 million.

Barclays is acting as financial advisor to TMX Group. ($1 = C$1.29) (Reporting by John Benny in Bengaluru; Editing by Savio D'Souza)