CME Considers Bidding for Michael Spencer’s NEX Group
By , , , and-
NEX could attract other suitors, according to sources
-
CME valued at $56 billion, NEX has $3.5 billion market cap
CME Group Inc., a $56 billion giant of futures trading, has approached Michael Spencer’s NEX Group Plc about potentially buying the company.
NEX, which runs markets for trading currencies and Treasuries, confirmed it’s in the early stages of negotiating with CME, an hour after Bloomberg reported on their discussions. No agreement may be reached, NEX said. A representative of CME declined to comment.
NEX could also attract interest from other exchange operators, according to two people familiar with the matter who asked not to be named discussing a private matter.
CME Chief Executive Officer Terry Duffy built Chicago-based CME into a powerhouse in part through takeovers, including deals for the Chicago Board of Trade and New York Mercantile Exchange. London-based NEX has a market value of 2.5 billion pounds ($3.6 billion). Formerly known as ICAP, it runs markets for trading currencies, Treasuries and other assets. That business complements CME, which offers derivatives on many of the same things.
CME’s shares rose 1.8 percent to $165.87 at 1:45 p.m. New York time Thursday, their first gain after three straight days of losses. NEX advanced 2.2 percent to 670.50 pence.
ICAP was once the biggest interbank derivatives brokerage. NEX CEO Spencer sold that part of his company in 2016 to Tullett Prebon, which renamed itself TP ICAP Plc, leaving NEX focused on electronic trading and post-trade services.
— With assistance by Will Hadfield, and Matthew Monks