Back to Main

CME Signs Agreement to Acquire Kansas City Board of Trade (CME)

By: Dividend.com
Posted: 10/17/2012 10:06:00 AM
Referenced Stocks: CME

CME Group Inc.( CME ) 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 months.

KCBT's board of directors have approved the acquisition, and the deal is subject of approval from KCBT shareholders and regulators.

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 agricultural products.

CME shares were down 16 cents or 0.28% Wednesday morning.

The Bottom Line
Shares of CME Group ( CME ) 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.( CME ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .