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NEX Group's £3.9bn ($4.96bn) takeover by CME Group cleared by UK competition watchdog

In a statement on Wednesday, the Competition and Markets Authority said it would not refer the deal, which will create a trans-Atlantic trading powerhouse, for any further investigation
Handshake
CME is one of the world’s biggest exchange groups owning the Chicago Board of Trade and the Chicago Mercantile Exchange

NEX Group PLC’s (LON:NXG) £3.9bn ($4.96bn) takeover by CME Group Inc. (NASDAQ:CME) has been cleared by the UK competition watchdog.

In a statement on Wednesday, the Competition and Markets Authority said it would not refer the deal, which will create a trans-Atlantic trading powerhouse, for any further investigation.

READ: Trans-Atlantic trading powerhouse: NEX Group agrees to takeover bid from CME worth around £3.9bn

CME is one of the world’s biggest exchange groups owning the Chicago Board of Trade (CBOT) and the Chicago Mercantile Exchange.

NEX - which was called ICAP until the sale of its voice broking business to TP ICAP PLC (LON:TCAP) in 2016 - is a financial technology company that matches buyers and sellers of bonds, swaps and currencies and was as founded by its chief executive, Michael Spencer, a former treasurer of the Conservative Party.

Under the takeover offer, announced at the end of March, shareholders will receive 500p in cash for each NEX share and 0.0444 new CME shares, which then valued each share in the UK firm at 1,000p. NEX shares were trading at 1,136p each in afternoon trading on Wednesday.

READ: NEX unit to pay US$50mln to settle US probe into rate manipulation

Back in September, NEX revealed that a subsidiary will pay a penalty of US$50mln from the US Commodity Futures Trading Commission to settle a claim related to the ISDAfix rate benchmark.

The company said its Intercapital Capital Markets LLC subsidiary will pay the penalty under a settlement with the US derivatives regulator, which had conducted an industry-wide investigation into alleged manipulation of ISDAfix, which is a rate used for interest rate swaps.



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