NYSE Euronext (NYX) and APX Inc. are planning a joint venture
called NYSE Blue that will focus on environmental and
sustainable-energy markets, in a move to strengthen the exchange's
position in global environmental markets.
The joint venture will include NYSE Euronext's existing
investment in BlueNext, established in late 2007, a spot market for
carbon credits, and APX, a provider of regulatory infrastructure
and services for those markets.
Markets for carbon credits are expected to grow along with
programs aimed at reducing carbon emissions. But momentum has
stalled due to a lack of action in the U.S. for cap-and-trade
legislation.
IntercontinentalExchange Inc. (ICE) said last month it is
examining the future of its new U.S. emissions-trading business
after the collapse of climate-change legislation.
Under such programs, carbon-dioxide producers, such as
coal-fired power plants, would have their carbon emission capped at
a certain level by government-issued credits for allowances. Those
that exceed their limits would have to purchase added carbon
credits from producers whose emissions fall below their allowed
amount.
NYSE Euronext will be the majority owner of NYSE Blue and will
consolidate its results. APX shareholders, who include Goldman
Sachs Group Inc. (GS) and energy-sector investment firms
MissionPoint Capital Partners and Onset Ventures, will have their
stakes in APX swapped for a piece of NYSE Blue.
When the deal closes, expected by year's end, APX Chairman and
Chief Executive Brian Storms will become NYSE Blue CEO. The venture
will focus on markets in North America and Asia.
Storms said, "The combination of an environmental commodities
infrastructure provider and a global exchange offers a unique entry
point into these rapidly developing markets."
NYSE Euronext shares closed Friday at $29.94 and were inactive
premarket. Markets were closed Monday for Labor Day. The stock is
up 18% this year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com