CME and CBOT complete merger to form new company

By Lisa Kerner

Charlotte, N.C., July 12 - Chicago Mercantile Exchange Holdings, Inc. and CBOT Holdings, Inc. finalized the merger of the two companies to form CME Group Inc., a CME/Chicago Board of Trade Co., on July 12.

The new company will trade on the New York Stock Exchange and Nasdaq under the ticker symbol CME. CBOT Holdings stock has been delisted and will no longer trade on the New York Stock Exchange.

Under the agreement, CBOT stockholders will receive 0.375 shares of CME Group class A common stock. CBOT also paid a one-time cash dividend of $9.14 per CBOT share, or a total of $485 million.

CME Group will be the "world's largest and most diverse exchange, with all major benchmark asset classes ultimately available on a single trading platform and floor," a company news release stated.

As previously announced, CME Group will begin a cash tender offer for up to $3.5 billion in common stock of the combined company, or about 12% of the combined company's outstanding shares, at a fixed price of $560 per share.

"As we have said all along, we believe this is the right strategic decision for CBOT's shareholders and customers," CME Group vice chairman and former chairman of CBOT Charles P. Carey stated in the release. "This merger delivers significant value for our shareholders and creates tremendous opportunities for our members and customers."

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