NYSE Euronext to Buy 5% Stake in India's Multi Commodity Exchange

NYSE Euronext announced last week it has signed a binding terms sheet to acquire a 5-percent stake in India’s Multi Commodity Exchange (MCX), the country’s leading commodity marketplace, subject to certain conditions.

The investment is the maximum equity interest allowed by foreign investors in derivative exchanges under current Indian law, and the closing of the NYSE transaction is expected to take place during the first half of this year.

“We believe that our investment in MCX will produce new business opportunities for NYSE Euronext in the commodities sector and deliver value to NYSE Euronext shareholders,” Duncan L. Niederauer, CEO of NYSE Euronext, said in a statement. “This transaction underscores our long-standing commitment to India and is consistent with our strategic business goal of aligning NYSE Euronext with partners globally and diversifying our product portfolio.”

Currently, there are 14 corporate listings from India on NYSE Euronext markets, 12 on the New York Stock Exchange and two on Euronext, whose combined total market capitalization exceeds $110 billion.