Market News
ICE buys NYSE
After nearly 200 years as an independent entity, the New York Stock Exchange has been sold to the Intercontinental Exchange.
The Atlanta based ICE bought the Big Board for $8.2 billion in equity or $33.12 per share, including the global operations, while maintaining the New York Stock Exchange building and trading floor.
NYSE shareholders will receive $11.27 per share in cash along with 0.1703 shares of ICE.
Ownership will consist of 64% existing ICE shareholders and 36% NYSE shareholders.
One market analyst tells Brownfield, while it may not have a direct impact on ag commodities, the purchase could be a sign the ICE has bitten off more than it can chew.
According to Allendale’s David Kohli, “Well, the ICE has been very aggressively trying to expand. If you’ll remember back just a few months ago, they were trading the grains the same as the [Chicago] Board of Trade, trying to compete with them, and then they expanded their hours, forcing the Board of Trade to do that, which caused a lot of consternation in the grain industry, so they’ve already affected the grain industry. This is a different kettle of fish – the New York Stock Exchange, a much bigger fish than what they were chasing, and maybe they’ve bought too big of a fish this time.”
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