NYSE Sells to Rival Exchange for $8.2B

Iconic 220-year-old exchange sells to competitor

By Kevin Spak,  Newser Staff

Posted Dec 20, 2012 7:55 AM CST

(Newser) – InterContinentalExchange Inc. has agreed to buy NYSE Euronext, the company that owns the New York Stock Exchange, for $8.2 billion, the two companies announced this morning. ICE, an Atlanta-based commodity exchange, says it intends to leave the NYSE's branding alone, and would explore an IPO for Euronext, spinning it off into a continental European entity, the Wall Street Journal reports. It will pay $33.12 a share for the elder exchange, or about a 37% premium on yesterday's close.

You might remember ICE from its last attempt to buy the NYSE, which failed thanks to antitrust concerns from regulators. While the 12-year-old company may lack the name recognition of the iconic NYSE, it's much larger in terms of market capitalization, at $9.3 billion to NYSE Euronext's $5.8 billion—a sign, the New York Times observes, of how completely commodity trading has outpaced stock trading in relevance.

In this Oct. 29, 2012 file photo, the floor of the New York Stock Exchange is empty of traders in New York.
In this Oct. 29, 2012 file photo, the floor of the New York Stock Exchange is empty of traders in New York.   (AP Photo/Richard Drew, File)
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