HKEx completes acquisition of LME

Shareholders of the London Metal Exchange have approved their company’s takeover by the Hong Kong Exchanges & Clearing Ltd.

The vote to approve taken on July 25 will see HKEx take over ownership of the world’s leading commodity exchange for US$2.2 billion. It saw 99.24% of shareholder in favor, said LME. The proposal needed the support of more than 50% of shareholders and owners controlling at least 75% of the stock.

The board backed proposal after evaluating all offers, including those from rivals CME Group Inc, Intercontinental Exchange Inc and NYSE Euronext.

LME handles over 80% of the world's trade in industrial-metal futures and sets global prices for metals, including copper, aluminum and nickel. LME handled a record US$15 trillion in contracts last year.

It is the first overseas acquisition for HKEx, the world's second-biggest exchange by market value, and its first contracts in commodities. LME members may get more access to China, which consumes more metals than any other nation.

The LME board recommended the offer because of the price, opportunities for growth and pledges to maintain the LME's existing structure, Chairman Brian Bender said. The bourse will continue to be regulated by the Financial Services Authority. Final approval is expected in November.