01—Abstract
Summary
Summary of the 8-K filed November 2, 2017. Cited figures are marked; the original filing is the authoritative source.
Intercontinental Exchange, Inc. (ICE) has entered into definitive agreements to divest its Trayport business to TMX Group Limited for a total consideration valued at £550 million.
This transaction comprises £350 million in cash and TMX Group's NGX and Shorcan Energy businesses, valued at £200 million. Simultaneously, ICE will acquire the NGX and Shorcan Energy businesses from TMX Group as part of a strategic exchange. The divestiture of Trayport is a result of a UK Competition & Markets Authority (CMA) order following ICE's acquisition of Trayport in December 2015.
The CMA has approved the sale, and both transactions are expected to close in December 2017, with the NGX/Shorcan sale potentially extending into early 2018. This strategic move allows ICE to comply with regulatory requirements while acquiring complementary energy trading platforms.
02—Key points
Key Highlights
- ICE is selling its Trayport business to TMX Group for a total consideration valued at £550 million.
- The consideration includes £350 million in cash and TMX Group's NGX and Shorcan Energy businesses, valued at £200 million.
- Concurrently, ICE will acquire TMX Group's NGX and Shorcan Energy businesses.
- The sale of Trayport is mandated by the UK Competition & Markets Authority (CMA).
- The CMA has approved the sale of Trayport.
- Both the Trayport sale and the NGX/Shorcan acquisition are expected to close in December 2017.
- The acquisition of NGX and Shorcan Energy aligns with ICE's strategy in energy trading platforms.
03—Questions
Frequently Asked Questions
Why is ICE selling the Trayport business?
ICE is selling Trayport as a result of an order from the UK Competition & Markets Authority (CMA) following ICE's acquisition of Trayport in December 2015. The CMA required ICE to divest Trayport.
What is the total value of the transaction for the Trayport sale?
The total consideration for the Trayport sale is valued by the parties at £550 million (approximately $720 million USD at the time of filing, based on historical exchange rates), consisting of £350 million in cash and the NGX and Shorcan Energy businesses from TMX Group, valued at £200 million.
What does ICE gain in this transaction?
In conjunction with selling Trayport, ICE is acquiring TMX Group's NGX (Natural Gas Exchange Inc.) and Shorcan Energy businesses. These acquisitions are expected to complement ICE's existing energy trading platforms.
When is this transaction expected to be completed?
Both the sale of Trayport and the acquisition of NGX/Shorcan are expected to close in December 2017. However, the NGX/Shorcan acquisition may extend into early 2018 if certain closing conditions are not met within the initial timeframe.
04—Continue