By Alex MacDonald 
 

LONDON--The sale of the London Metal Exchange to Hong Kong Exchanges and Clearing Ltd. (0388.HK) wasn't simply about price, it was about the finding the right fit, the chairman of the 135-year-old base metals exchange said

Hong Kong Exchanges made an all-cash offer worth 1.388 billion pounds ($2.24 billion) for the LME and received approval from shareholders representing 99.63% of LME shares in July, marking a record acceptance rate under the U.K. Companies Act, LME Chairman Sir Brian Bender told an audience at LME's annual dinner event Tuesday.

The vote followed a lengthy bidding process for the LME, which saw the Asian exchange beat off tough competition from other major exchanges, including CME Group Inc. (CME), NYSE Liffe--the London-based derivatives arm of NYSE Euronext (NYX)--and IntercontinentalExchange Inc. (ICE).

Sir Bender said the deal "wasn't simply a matter of the price." The board wanted any offer to pass several tests before it would be willing to recommend an offer.

The board sought assurances that the LME would be kept in London and remain regulated by the Financial Services Authority. Its members also wanted assurances that bidders would keep those features of the LME business model, such as its links to the physical market, that they considered most important to users and to the integrity of the market. Finally, they were interested in the bidder's growth strategy.

"The overwhelming support our shareholders gave to the offer from HKEx shows that they considered that it provided compelling answers on all points," he said.

The deal is currently being considered by the FSA, and is forecast to close later this autumn, Sir Bender said.

Write to Alex MacDonald at alex.macdonald@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Grafico Azioni NYSE Group (NYSE:NYX)
Storico
Da Giu 2024 a Lug 2024 Clicca qui per i Grafici di NYSE Group
Grafico Azioni NYSE Group (NYSE:NYX)
Storico
Da Lug 2023 a Lug 2024 Clicca qui per i Grafici di NYSE Group