CME knocked out of race to buy London Metal Exchange
JUST two bids for the London Metal Exchange (LME) remain on the table after an offer from US exchange group CME fell short of expectations.
This leaves just InterContinental Exchange (ICE) and Hong Kong Exchanges and Clearing (HKEx) in the race to purchase the world’s largest metals marketplace.
Both remaining parties are understood to have submitted bids of around £1.2bn.
“The Board of the LME has decided to continue discussions with two parties regarding their proposals for the potential acquisition of the LME. This process will continue over the coming weeks,” the exchange said in a notice issued yesterday.
Some traders have raised concerns that a potential sale could end many traditions associated with the 135-year-old exchange.
But the LME board confirmed that it will consider each bidder’s “plans for the future governance and operation of the market and the deliverability of their respective proposals” in addition to the value of the bid.
Both CME and ICE declined to comment, while HKEx could not be reached.