The parent company of the Chicago Mercantile Exchange (CME) and the Chicago Board of Trade announced Monday it would purchase the New York Mercantile Exchange (Nymex) in a $9.4 billion cash and stock deal that combines the country's two biggest futures exchanges. CME Group agreed to pay $3.4 billion in cash and about $6 billion in stock for Nymex Holdings as part of the buyout that was first discussed earlier in the year. The combined company will continue to operate trading platforms in both New York City and Chicago as long as the New York trading floor meets certain revenue and profit requirements, executives said. “The floor has been very profitable and is a valued part of the history and continues to be,” said Nymex chairman Richard Schaeffer. “We at Nymex expect to continue that profitability for a long period to come.” Under the terms of the agreement, CME will pay 12.5 million shares—valued at $6 billion based on the stock's Friday closing price. Analysts welcomed the deal, saying it will give CME access to new geographical areas and the fast-growing market for energy derivatives.
