According to Dow Jones Newswires, CME Group has agreed to buy the Kansas City Board of Trade for US$126 million.
CME already owns the Chicago Board of Trade (CBOT). By purchasing Kansas City, CME would then offer wheat contracts for both soft and hard wheats, along with several other agriculture commodity contracts.
While it’s not a done deal just yet, the board for KCBOT has approved the deal. The deal is expected to close later this year if all goes as planned.
ICE, the company that now owns what was once the Winnipeg Commodity Exchange, has not yet commented on the sale. Some are waiting to see if ICE will offer a counter bid.
Read more on the purchase as well as how this changes the U.S. exchange landscape here.