USA – Miami International Holdings (MIH), an exchange holding company, has received the approval to acquire The Minneapolis Grain Exchange (MGEX) after MGEX membership voted in favor of demutualization.
MIH and MGEX had previously announced that they had entered into a definitive agreement and plan of merger under which MIH agreed to acquire MGEX for a combination of cash and MIH common stock.
“We are grateful that our seat holders recognized the extraordinary opportunity afforded to us through the joining of our exchange with MIA exchange group. The demutualization and merger with MIH will position us for the continued growth of MGEX,” said Mark G. Bagan, president and chief executive officer of MGEX
The merger remains on schedule and is expected to close in the fourth quarter of 2020, subject to the satisfaction of customary closing conditions and regulatory approvals.
“The decision to demutualize shows a tremendous vote of confidence in MIH and our plans for MGEX, one of America’s oldest and most respected exchanges,” said Thomas P. Gallagher, chairman and CEO of MIH.
Once the merger is complete MGEX will become a wholly owned subsidiary of MIH. MIH will continue to maintain the trading and clearing operations of MGEX, including its hard red spring wheat contract, while adding new futures products.
“We believe that combining with MIH is the best outcome for our members and futures trading community as a whole,” Bagan said
“No other exchange group is better positioned for future growth, and this acquisition provides MGEX with the resources and scale necessary to further strengthen our product offerings and innovation to drive top-line and bottom-line growth. I, along with all of my MGEX colleagues, look forward to becoming part of the MIH family.”
MGEX, established in 1881, is one of the oldest trading venues in the United States, with more than 400 seats, historically concentrated on trading in agricultural products, including hard red spring wheat contracts. The acquisition of MGEX significantly diversifies MIH’s product portfolio by immediately providing MIH with a futures exchange and clearing facility.
MGEX shuttered its open-outcry trading pits in 2008, converting to fully electronic trade.
Miami International Holdings, Inc. (MIH) is the parent holding company of Miami International Securities Exchange, LLC (MIAX®) and owns a controlling interest in the Bermuda Stock Exchange.
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