SGX, Baltic Exchange extend exclusive M&A talks

SINGAPORE – Bourse operator Singapore Exchange (SGX) said on Tuesday (June 28) that it has agreed with the Baltic Exchange to extend the period of exclusive negotiations for its bid to buy the London-based bourse by two months.

SGX has been in exclusive talks since May 25 to buy the Baltic Exchange, which has been at the heart of the global shipping industry for centuries. The period for exclusive talks has been extended to Aug. 31 from June 30, SGX said in its statement.

“SGX and the Baltic Exchange have together met with shareholders and much of the stakeholder community over the past weeks to discuss the transaction and have made good progress in consultations,” it said.

A successful purchase would boost SGX’s efforts to diversify revenue streams at a time when it has been hit by sluggish securities volumes. SGX also sees long-term potential for freight derivatives and has launched new products to increase the appeal of its Asian pricing benchmarks for commodities such as iron ore, liquefied natural gas and coking coal.

The deal for the 272-year-old exchange would also fit well with Singapore’s positioning as a leading hub for financial services, commodities trading and shipping.

“The proposed transaction would bring together complementary strengths of Singapore and London, two of the world’s most important maritime hubs… SGX has been successful in driving the growth of the global dry bulks and freight market and is now a significant provider of clearing and settlement of freight derivatives,” SGX said when it first entered into exclusive talks.

“Both SGX and the Baltic Exchange would also benefit from new growth opportunities, including potential new shipping benchmarks and clearing solutions that meet the market’s evolving needs for data and trading,” it said. - AGENCIES