HKEx to acquire LME Holdings

June 15, 2012

Hong Kong Exchanges & Clearing announced today it will acquire the entire issued ordinary share capital of LME Holdings for cash at $16.67 billion.
 
The offer price is about $1,292.55 for each LME Holdings Ordinary Share, which values the entire issued ordinary share capital at about $16.673 billion. The transaction is expected to complete in the fourth quarter. The offer price is to be financed from existing cash resources and at least $13.214 billion in new bank facilities.
 
HKEx Chief Executive Charles Li said the acquisition represents a unique opportunity to acquire in one stroke a position of global leadership in the commodities market. "This is consistent with our strategy to expand beyond equities and equity derivatives and offers significant opportunities for revenue growth."
 
LME Holdings is the holding company of the London Metal Exchange. The Recognised Investment Exchange operated by the London Metal Exchange is the world’s leading exchange for the trading of base metal futures and options contracts, with a global market share estimated to be at approximately 80%.