ICE Buys Leading LNG/Chemicals Trading Platform ChemConnect

IntercontinentalExchange, Inc. [ICE] continued its push to expand its share of U.S. OTC e-trading Monday, announcing it will acquire ChemConnect Inc.'s commodity trading business for an undisclosed sum of cash. The announcement sent ICE shares to a closing price of $149.67, a gain of $6.70, or 4.69%.ice ChemConnect's commodity trading business includes the liquid natural gas [LNG] market as well as chemical commodities like ethylene, propylene and benzene. As part of the arrangement, which is expected to close in July, ChemConnect will shift its electronic trading platform over to ICE's. ICE President and CEO Charles Vice said he believes "the acquisition of the leading electronic physical NGL and chemicals trading platform [ChemConnect] is an excellent fit with our leadership in the U.S. physical gas and power markets." ICE is currently in the midst of a bidding war with the Chicago Mercantile Exchange over the right to acquire the Chicago Board of Trade.

Sources: Press Release, MarketWatch, Reuters, AP
Commentary: ICE Pact With Chicago Options Exchange May Assist In Its CBOT BidCBOT Taking ICE Offer Seriously: Money TalksCramer's Take on ICE
Stocks/ETFs to watch: IntercontinentalExchange, Inc. (NYSE:ICE). Competitors: CBOT Holdings, Inc. (BOT), Chicago Mercantile Exchange Holdings Inc. (NASDAQ:CME), NYMEX Holdings Inc. (NMX), International Securities Exchange Inc. (ISE)
Related: ChemConnect

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