CME Group confirms preliminary approach to acquire NEX

A big M&A deal may be in store, as CME Group Inc (NASDAQ:CME) has just confirmed that it has made a preliminary approach regarding a potential acquisition of NEX Group PLC (LON:NXG).

In its regulatory filing with the London Stock Exchange, CME says that it is currently working with to allow CME to complete due diligence and determine whether a firm offer can be made. At this point, there can be no certainty that any firm offer will ultimately be made for NEX, nor in relation to the terms on which such offer may be made.

CME notes that it takes a disciplined approach to acquisitions with clearly defined strategic and financial objectives. Any offer concerning NEX would have to meet these objectives, today’s announcement said.

In accordance with Rule 2.6(a) of the Code, CME is required, by not later than 5.00 p.m. on April 12, 2018, being the 28th day following the date of NEX’s announcement to either announce a firm intention to make an offer for NEX in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.

Let’s recall that on Thursday, March 15, 2018, the Board of NEX commented on recent press speculation and announced that it had received a preliminary approach by CME. Discussions are at an early stage, NEX said.

As at the close of business on March 14, 2018, NEX’s issued share capital consisted of 379,735,432 ordinary shares of 17.5 pence each excluding shares held in treasury. The International Securities Identification Number for NEX’s ordinary shares is GB00BZ02MH16.

Citigroup Global Markets Limited is acting as joint financial adviser to NEX in connection with matters set out in the announcement about the CME approach. Evercore Group L.L.C. and Evercore Partners International LLP are acting as financial adviser for NEX.