The New York Mercantile Exchange, the world’s largest energy market, is exploring a sale to NYSE Euronext, Deutsche Boerse AG or Chicago Mercantile Exchange Holdings Inc., two people involved in the discussions say Bloomberg reports.
Nymex Holdings Inc. may be valued at $155 a share or $14.3 billion, 11 percent more than yesterday’s closing price of $139.80, one of the people says, who asked not to be identified because the talks are confidential.
Top Nymex executives have met with their counterparts at the three suitors, the people say. Nymex’s board has been informed of the discussions.
The talks reflect efforts by exchanges worldwide to offer more products in one place, as hedge funds and investors participate across a range of markets. In April, NYSE Group Inc. bought Euronext NV for $14.6 billion and Frankfurt-based Deutsche Boerse agreed to buy New York-based International Securities Exchange for $2.8 billion.
“What this does is speak to how size is extremely important to being competitive,” says Mark Williams, a finance professor at Boston University. “The derivatives market in general has really exploded in part because trade is becoming more global.”
Walter Allwicher, a spokesman for Deutsche Boerse, said the company doesn’t comment on speculation. Chicago Mercantile spokesman Allan Schoenberg declined to comment, as did Richard Adamonis of NYSE Euronext, based in New York.