Intercontinental Exchange, the US group, plans to sell Trayport, a UK commodities trading platform it bought almost two years ago, to the Canadian stock exchange TMX Group in a deal valued at £ 550million.
ICE said on Friday it would sell Trayport for £ 550million in cash, but in return it would buy energy broker Shorcan Energy and NGX, an Alberta-based exchange, which together are valued at £ 200million.
The operator of the exchange and clearinghouse had come under pressure to buy Trayport in late 2015 for $ 650 million on the grounds that the deal could dampen competition in the European energy market.
In March, the UK Court of Appeal upheld a decision by the Competition and Markets Authority that ICE had to sell the company. The CMA’s initial decision last October was the first time the CMA had asked a company to sell an asset it had already purchased since the watchdog replaced the Office of Fair Trading and Competition Commission in 2014.
The AMC has approved the sale to TMX Group, the owner of the Toronto Stock Exchange, ICE said. ICE added that it had entered into a non-binding memorandum of understanding agreeing to “explore in the future other avenues of possible collaboration” with the Canadian group.
TMX Group said the transaction is expected to have a positive impact on its adjusted earnings per share and be accretive in 2018.