Shareholders of CME Group Inc. and Nymex Holdings Inc., the parent of the New York Mercantile Exchange, today approved their merger.
Preliminary results indicate the shareholders of both companies have approved the proposed merger of CME Group and NYMEX Holdings Inc., CME officials said in a statement. Preliminary results also show that NYMEX Class A members have voted to approve the related proposals in a separate member vote.
Nymex is the worlds largest energy futures market, and Chicago-based CME is the worlds largest financial derivatives exchange.
Based on CMEs closing stock price today, the Chicago exchanges bid is valued at $7.65 billion, a small premium over Nymexs $7.58 billion market value and $3.6 billion less than when the offer was first announced on Jan. 28. Both stocks have sold off in recent months the CME is down 50% while Nymex shares have fallen 40% year to date.
The acquisition will close on Friday, and the price will be based on the CME share price at the close that day.
We look forward to building our presence in New York City, said CME CEO Craig Donohue, who took part in a press briefing after the announcement.
Approval by a simple majority of shareholders of both exchanges plus three-quarters of the 816 Nymex members was needed to close the deal. To sway the Nymex members, CME upped its offer to $750,000 per member, from $612,000 originally. CME will also pay a special $350 million dividend to all shareholders after the deal closes.