The bourse of energy and commodity futures, IntercontinentalExchange Inc. (NYSE:ICE) is about twelve years old. It has agreed to buy NYSE Euronext (NYSE:NYX) for cash and stock with a value of $8.2 billion. This is a step by IntercontinentalExchange Inc. (NYSE:ICE) towards taking being in charge of the biggest equities market of the world.
Atlanta based, IntercontinentalExchange Inc. (NYSE:ICE) is buying at $ 33.12 per share for NYSE Euronext (NYSE:NYX). The proposal gained approval by the boards of both the companies and the transaction should be expected be completed in the second half of 2013. During the last year, a joint proposal by IntercontinentalExchange Inc. (NYSE:ICE) and NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) for the company was disputed by the U.S. Justice Department on the basis of the apprehension that the grouping would lead to U.S stock listing dominance.
The first one NYSE Euronext (NYSE:NYX) is the owner of the largest exchanges in the United States, Netherlands and France by the value of listings and the second one is the second in the futures market. The merger emphasizes both the importance of derivatives which is fast growing and the thinning influence of the NYSE Euronext (NYSE:NYX) which is 220 years old.
The Chief Executive Officer at the Intercontinental Exchange Inc. (NYSE:ICE), Jeffrey Sprecher, will be heading the joint company and the Chief Executive Officer at NYSE Euronext (NYSE:NYX), Duncan Niederauer will be the President of the company. There are plans in consideration by the companies to look at opportunity of the European equity unit of Euronext (NYSE:NYX) for the initial public offering.
Since October 2010, there have been unsuccessful exchange takeovers worth value of $32 billion. This takeover is expected to demonstrate an extraordinary accomplishment. Through the deal of purchasing NYSE Euronext (NYSE:NYX), Sprecher has actually paved a way to get access to the derivatives platform of the company,
IntercontinentalExchange Inc. (NYSE:ICE) was founded by Sprecher as an online marketplace for the trading of energy. The seed capital for the same came from money gathered by previous company of Sprecher through the settlement. The combined company is expected to offer improved products across the classes of assets.
Shares of IntercontinentalExchange Inc. (NYSE:ICE) were down by 1.40% to close at $130.10
Share of NYSE Euronext (NYSE:NYX) were up by 34.10% to close at $32.25
Shares of NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) were up by 3.53% to close at $26.11
