CME Group, the worlds largest derivatives exchange, announced it agreed to acquire NYMEX Holdings Inc., parent of the New York Mercantile Exchange, which is the worlds largest energy market.
Nymex already trades most of its contracts on the CMEs Globex under an exclusive agreement.
Based on the CMEs closing price on Friday of $486.05 a share, the deal is valued at $9.4 billion. Nymex shareholders will receive 0.1323 share of CME Group Class A common stock, or $64.30, plus $36 in cash for each share of Nymex common stock. There are 93.984 million Nymex shares outstanding.
CME is projecting the merger will result in $60 million in annual savings from consolidation and said in a statement it will continue to operate a trading floor in New York City as long as both revenue and profitability thresholds are achieved going forward.
Nymex also has a stake in the Dubai Mercantile Exchange, Norways Imarex derivatives exchange, and a new Green Exchange.