CME Group to Acquire KCBT in $126 Million Deal
CHICAGO (AP) - CME Group is acquiring the Kansas City Board of Trade in a $126 million cash deal that will expand its agriculture futures business to include the type of wheat found in bread and other food products.
The acquisition will allow Chicago-based CME to compete directly with the Intercontinental Exchange in hard red winter wheat market. That variety represents much of the wheat grown in the U.S.
Under terms of the deal, CME will maintain a committee of Kansas City Board of Trade market participants to advise on hard red winter wheat contract terms and conditions for at least three years. It also will keep the trading floor open in Kansas City for at least six months.
The deal is expected to close later this year.
CME already owns the Chicago Board of Trade and the New York Mercantile Exchange.