IntercontinentalExchange to Acquire Singapore Mercantile Exchange
Fresh off its absorption of bourse operator NYSE Euronext, IntercontinentalExchange is preparing to swallow another marketplace. The company announced that it has signed a definitive agreement to acquire the Singapore Mercantile Exchange. The terms were not disclosed, although IntercontinentalExchange did say that the purchase will be effected in an all-cash transaction.
Singapore Mercantile Exchange, commonly referred to by the initials SMX, operates local futures markets for metals, currencies, energy, and certain commodities. It operates both as an official exchange and as a clearinghouse.
The purchase is part of IntercontinentalExchange's broader strategy to expand its global footprint onto growing economies. In the press release announcing the news, the company's chief strategy officer, David Goone, pointed out that "in recent years, Asia-based trading activity in our benchmark energy and interest rate products has been rising as the region increases in importance in global markets."
The acquisition is expected to close by the end of this year. It is subject to approval from the relevant regulatory bodies.
At the end of its most recently reported quarter, the company had more than $1.5 billion in cash and equivalents.
The article IntercontinentalExchange to Acquire Singapore Mercantile Exchange originally appeared on Fool.com.Fool contributor Eric Volkman has no position in IntercontinentalExchange. The Motley Fool recommends IntercontinentalExchange. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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