NYSE Euronext Completes Transaction to Purchase 5% Equity Interest in India's Multi Commodity Exchange (MCX).
Continues NYSE Euronext's Strong Commitment to India and Global Diversification Completed share & fund transfer @ Rs. 559 per share (enterprise valuation of 1.1billion USD), on RBI and FIPB approval.
New York, Paris and Mumbai, 1st July, 2008 – NYSE Euronext (NYX), the world's leading and most diverse financial market group, today announced that it has completed through its affiliate Euronext NV, the acquisition of a 5% equity position in the Multi Commodity Exchange (MCX), India's largest commodity derivatives exchange. The 5% equity investment is the maximum equity interest permitted by a single foreign investor in exchanges under current Indian law.
"Through our investment in MCX, NYSE Euronext continues to expand its global leadership by aligning our diverse business model with other global entities that add value to our customers and shareholders," said Lawrence Leibowitz, NYSE Euronext Group Executive Vice President and Head of U.S. Execution and Global Technology.
"Asia-Pacific is a strong, growing region for global capital markets and we are very pleased to formalize our intent to be a part of that growth by investing in and working with MCX, India's No. 1 commodity derivatives exchange."
Speaking on the occasion Mr. Joseph Massey, MD & CEO, MCX said, "The strategic investment by NYSE in MCX takes our relationship to the next level and we see it as strategically important in the global context.
"Mr. Jignesh Shah, Chairman and CEO Financial Technologies Group and Vice-Chairman MCX added "This strategic partnership is an excellent case study and example of how we (Financial Technologies Group) plan to work together with global partners, like NYSE Euronext, to execute our vision of creating one of the largest global exchange networks across the fast growing economies of Africa, Central Asia, Middle East, India, China and other Asian countries.
"Financial Technologies Group (www.ftindia.com), has set-up seven exchanges for trading in derivatives and spot in Commodities, metals, energy, soft and power among other asset classes and continues to explore opportunities to create new greenfield exchanges that can help unlock value from – new region, new asset class or new investor base.
Currently, there are 14 corporate listings from India on NYSE Euronext markets, 12 on the New York Stock Exchange and two on Euronext (including one interlisted company), whose combined total global market capitalization is approximately $96.5 billion. On July 31, 2006, MCX and Liffe, NYSE Euronext's derivatives business, entered a licensing agreement for MCX to use Liffe futures prices, enabling MCX to list domestic 'mini' futures contracts for Robusta Coffee based upon Liffe futures prices.
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