The acquisition of Options Tech, OTC Energy, and FX Futures of GFI Group has been highlighted by CME Group during its announcement.
The complete takeover of GFI Group by CME Group has been paid out in CME Group stock for $4.55 per share, which according to the company, is part of the strategic transactions between the companies. The yesterday’s closing price revealed to be lower by 46% premium from the price compensated for the takeover.
A private consortium, likely spearheaded by GFI Group, will obtain the wholesale brokerage of GFI ($165 million and approximated $63 million of miscellaneous liabilities and unvested overdue compensation) in a cash basis deal from CME Group. The long-term commitment agreements dealt by GFI Group will help it continue its Trayport and FENICS use for its brokerage operations.
By early 2015, the closing of acquisition is expected along with the deliverance of GFI Group’s stockholders agreement.
Terry Duffy, the Executive Chairman of CME Group, stated that through taking over a well-established company like Trayport, the involvement of CME in the energy markets of Europe will expand and all participants in the said marketplace will reap benefits in trading opportunities and operational efficiencies. The maintenance of the Trayport operating platform’s independence will be observed despite the takeover. Duffy also added that CME Group’s acquirement of GFI Group simply showed its expansion in European and international marketplaces.
Phupinder Gill, the Chief Executive Officer of CME Group, added that effective and efficient integration and connection with OTC FX options market will be bestowed to the company’s FX futures, as proven by FENICS accumulation.
Operation of Trayport subsidiary will continue regardless of the purchase. It will simply add up to CME Group’s energy business and will still utilize its technology to benefit coal, oil, carbon emissions, and natural gas markets. FENICS, on the other hand, will retain its management structure and continue in providing services for price discovery, workflow connectivity, risk management, and analytics.