Saturday, April 14, 2007

Chicago, Nymex may pick up 5% each in MCX

The country’s three leading commodity exchanges are in the final stages of negotiations with their global counterparts for a possible stake sale even as the government is set to announce foreign investment guidelines for comexes in the next few days.

While the Chicago Mercantile Exchange (CME) and the New York Mercantile Exchange (Nymex) are expected to pick up 5 per cent stake each - the maximum to be allowed to a single entity under the policy - in the Multi Commodity Exchange of India (MCX), the US-based Intercontinental Exchange (ICE) is in talks with the National Commodity & Derivatives Exchange (NCDEX).

Exchanges are getting the highest valuations in the global marketplace and sources close to the developments said Nymex may buy stake in MCX based on an enterprise value of $1 billion. The Ahmedabad-based National Multi-Commodity Exchange (NMCE) is also looking at a strategic partner and is in talks with various international and domestic exchanges. The Bombay Stock Exchange is believed to be one of the contenders.

Read more in The Business Standard article.

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