Nymex Investors Okay Acquisition Of CME Group

This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.

The New York Sun

Nymex Holdings Inc. shareholders approved CME Group Inc.’s takeover, completing a transaction that may stem CME Group’s 51% slide on the New York Stock Exchange this year.

A majority of CME and Nymex investors voted for the deal yesterday in New York and Chicago, the companies said in a news release. The transaction cements CME Group’s status as the world’s largest derivatives market.

The chief executive officer of the CME Group, Craig Donohue, and the chairman, Terry Duffy, met with shareholders in the past two weeks to shore up support after some Nymex members said they would reject the offer. Mr. Donohue, 42, had sweetened the exchange’s offer twice, and last week two chief opponents dropped their complaints.

“In the exchange landscape of the future, there will be three to four big companies, global with different types of products,” a senior executive in the capital markets group at consulting firm Accenture, Michael Henry, said. “CME wants to be one of those companies. It’s defending it’s home turf by acquiring U.S.-based derivatives exchanges, but it still needs to make that move and show that it can act globally.”

The deal is expected to close August 22.

The New York Sun

© 2023 The New York Sun Company, LLC. All rights reserved.

Use of this site constitutes acceptance of our Terms of Use and Privacy Policy. The material on this site is protected by copyright law and may not be reproduced, distributed, transmitted, cached or otherwise used.

The New York Sun

Sign in or  Create a free account

By continuing you agree to our Privacy Policy and Terms of Use