UK: CMA looks into US$5.4b CME-NEX deal

UK antitrust regulators have kicked off an inquiry into whether they should approve exchange giant CME Group’s £3.9 billion (US$5.4 billion) purchase of Michael Spencer’s NEX Group. The Competition and Markets Authority (CMA) stated on Thursday, September 13, that it is considering whether the acquisition, agreed upon in March, could result in a “substantial lessening” of competition within the UK.

The filing kicks off a 40 business-day timetable in which the CMA must approve the deal, or send it for an in-depth investigation. Then agency must make a decision by November 8, according to a statement on its website.

CME told investors in August it expects the deal for the UK trading and technology group to close by the end of the year. The deal also needs approval from the US Department of Justice, although there is no formal public filing in the US.

If approved, the combination will turn Chicago’s CME into the dominant market operator in the US$500 billion-a-day US Treasuries market, reported the Financial Times.

Full Content: Financial Times