InterContinentalExchange agrees to buy Climate Exchange

30th April 2010, Comments 0 comments

US-based markets operator InterContinentalExchange announced Friday that it has agreed to buy Climate Exchange, a specialist in carbon trading, for 395 million pounds.

The deal, worth the equivalent of 458 million euros or 607 million dollars, was pitched at 750 pence per share in cash, the pair said in a joint statement.

"IntercontinentalExchange ... today announced that it has agreed on terms to acquire Climate Exchange plc, a leader in the development of traded emissions markets," the groups said in a statement.

Climate Exchange, which is listed on London's Alternative Investment Market, operates the European Climate Exchange, the Chicago Climate Exchange and the Chicago Climate Futures Exchange.

"The combination of Climate Exchange's emissions markets and ICE's futures and over-the-counter energy markets is an important and logical strategic combination for our customers and shareholders," said ICE Chairman and Chief Executive Officer Jeffrey C. Sprecher in the statement.

He added that it was "clearly an exciting opportunity for ICE to grow and further diversify our revenues".

Richard Sandor, Chairman of Climate Exchange, added that the deal made strategic sense.

"We believe that a combination with ICE makes strategic sense and look forward to addressing continued opportunities together," said Sandor.

"ICE has committed to further developing the Climate Exchange businesses and building on our joint track record of innovation and success to the benefit of our customers across futures and over-the-counter markets in Europe, Asia and the United States."

Carbon trading operates under a system in which a country or enterprise that manages to cut its carbon dioxide emissions below an agreed upon level can sell that reduction as a credit to entities that exceed the emission level.

© 2010 AFP

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