CME Group Inc.(
) has announced that they will be acquiring commodity futures and
options exchange, Kansas City Board of Trade.
CME has reported that they have signed an agreement to acquire
the Kansas City Board of Trade (KCBT) for $126 million. In
addition, the agreement also states that KCBT must make a special
cash distribution of excess cash to members at closing. CME has
agreed that they will keep the current committee of KCBT market
participants to advise on HRW wheat contract terms and conditions
for at least the next three years. They have also agreed to
maintain the KCBT trading floor in Kansas City for at least six
KCBT's board of directors have approved the acquisition, and the
deal is subject of approval from KCBT shareholders and
Acquiring KCBT will allow CME to expand their product offerings
both domestically and through exporting. The deal will benefit
customers globally, and allow them to have more options with
CME shares were down 16 cents or 0.28% Wednesday morning.
The Bottom Line
Shares of CME Group (
) have a 3.13% dividend yield, based on last night's closing stock
price of $57.49. The stock has technical support in the $52-$54
price area. If the shares can firm up, we see overhead resistance
around the $60-$62 price levels.
CME Group Inc.(
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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