London Metals Exchange Bid Possibilities: ICE, NYSE, CME, and Others (CME, ICE, NYX)

CME Group Inc. (NYSE: CME) is reportedly ready to go after the London Metal Exchange.  Bloomberg has reported that multiple bidders have become interested because the exchange controls somewhere around 80% of the world’s trading in metals futures.  The value of the deal is said to the be around $1.3 billion.

Our question is just how on earth the CME would be able to snag the deal in this current regulatory climate.  A committee is said to be reviewing the bids this week and next week.

What is interesting is that NYSE Euronext Inc. (NYSE: NYX) and Intercontinental Exchange (NYSE: ICE) may be bidding as well.  With the recent failed deal between Deutsche Boerse AG (also a possible bidder), we wonder if regulators will clear a deal for any buyout by any new buyer that is already an established exchange if the market share is anywhere 80%.

JON C. OGG