The IntercontinentalExchange Inc. (NYSE: ICE) is about to get a serious makeover. With its $9.4 billion market value, the futures exchange is acquiring the NYSE Euronext Inc. (NYSE: NYX). This is no merger of equals either as this is the NYSE Euronext becoming a subsidiary of the ICE.
The real value here is not just the floor operation of the New York Stock Exchange. In fact, that may actually be a drag holding the NYSE value down to under $8 billion today. To prove the point, the NYSE share price of $32.00 and change after the buyout compares to a share price peak above $90 back in 2007 before the recession.
This begs a question. With exchange mergers continuing to take hold, will CME Group Inc. (NASDAQ: CME) with its $17 billion market value go after the Nasdaq OMX Group Inc. (NASDAQ: NDAQ) and its $4.3 billion market value. The CME competes against ICE and the NASDAQ and NYSE are longstanding rivals. The NASDAQ and ICE were looking for a NYSE bid in 2011 and the Deutsche Boerse merger with NYSE was blocked. Recent reports showed that the CME was interested in buying the NYSE.
This brings up a simple yet serious question. Will CME go after NASDAQ? The answer is not so simple. Stay tuned. The global consolidation of financial exchanges is not yet finished.
JON C. OGG
Filed under: 24/7 Wall St. Wire, Banking & Finance, Exchange, Exchange News, Financial Stocks, Mergers & Acquisitions, Mergers and Buy Outs, Regulation Tagged: CME, featured, ICE, NDAQ, NYX