CME Group and GFI Group receive regulatory approval to complete acquisition transaction

North American multinational derivatives marketplace CME Group Inc, and interdealer broker GFI Group Inc., have today announced that they have received all of the material regulatory approvals necessary to close the previously announced acquisition of GFI Group by CME.

Last month, LeapRate reported that close bidding by the two companies interested ensued as they grappled for the ability to acquire GFI Group, with CME Group having made an offer to buy the 83% of GFI it didn’t already own for $4.55 per share back in July. That bid was topped by GFI’s rival BGC Partners which made an all-cash bid for GFI in September.

After a reasonably protracted period of time, CME Group did not give up and raised its bid to match BGC’s, at $5.25 per share, valuing GFI (NYSE:GFIG) at about $675 million.

The transaction remains subject to the approval of GFI Group’s stockholders; GFI Group will hold a special meeting of its stockholders on January 27, 2015 to vote on the transaction.

“With these regulatory approvals and the significant shareholder support through commitments from Jersey Partners Inc., GFI Group’s largest stockholder, we believe the planned merger of CME Group and GFI Group can deliver value with speed and certainty for all GFI Group shareholders,” said GFI Group Executive Chairman, Michael Gooch.

The revised transaction has been approved by the Board of Directors of GFI Group upon the unanimous recommendation of a Special Committee comprised solely of independent and disinterested directors, and by the Board of Directors of CME Group. The transaction is expected to close shortly following the stockholders’ meeting.

For the official announcement from CME Group, click here.

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