IntercontinentalExchange To Acquire Climate Exchange

May 11, 2010 12:57 PM ETICE
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Contributor Since 2009

SustainableBusiness.com (http://SustainableBusiness.com), online since 1996, is known as the voice for green business on the Internet, providing global news and networking services to help green business grow. It covers all sectors that impact green business including renewable energy, green building and green investing. Progressive Investor is a monthly, online newsletter that guides people toward green investments. This trusted source helps individuals and analysts identify and invest in companies leading the way to a green economy including clean energy, green building, recycling, water and healthy living. It’s the only newsletter that covers the top sustainable companies, large and small, across the full range of industry sectors worldwide. Each year, Progressive Investor produces the SB20, the World’s Top Sustainable Stocks. A group leading green portfolio managers serve as judges, selecting 20 stocks each year that represent models of sustainability. SustainableBusiness.com Services: Daily Green Business News; Daily Green Investor News; Green Week in Review Podcast: weekly summary & analysis of the most important news; SBNewswire: press releases from green companies and organizations; Green Dream Jobs: leading green jobs service; Business Connections: networking for green businesses; Events: comprehensive events calendar; Emerging Green Stocks: promotion service for micro green stocks; Green Stock Watch: comprehensive tracking of green stocks; Progressive Investor: trusted green investing newsletter, with ongoing analysis of clean tech investment opportunities

IntercontinentalExchange (NYSE: ICE) has agreed to acquire Climate Exchange plc, the British operator of emissions trading markets in Europe and Chicago, for about $600 million.

Climate Exchange operates the European Climate Exchange (ECX), the Chicago Climate Exchange (CCX) and the Chicago Climate Futures Exchange (CCFE).

Under the terms of the acquisition, Climate Exchange shareholders will receive 7.50 pounds ($11.44) in cash for each share held on April 30. The Associated Press reported the price was about a 57% premium on Climate Exchanges closing price on April 30. 

ICE acquired a 4.8% stake in Climate Exchange on June 22, 2009 for 6.45 pounds a share. The companies have worked together on an electronic trading platform since 2003.

The acquisition will include $220 million that has been drawn from ICE's existing credit facilities for these purposes and the remainder from existing cash resources.

CCX launched in 2003, and currently has nearly 300 members that make a legally binding commitment to meet annual GHG emission reduction targets. The US does not currently mandate carbon emissions trading, but if it ever does, the CCX is well situated to benefit.

In 2008, New Energy Finance estimated the global carbon market could grow to more than $1 trillion by 2020, if the US adopts a cap-and-trade program

Climate Exchange is expected to add to ICE's earnings in 2011, though it is likely to lower them slightly for the remainder of this year, ICE said. 

The deal is expected to close at the end of July 2010.

"The combination of Climate Exchange's emissions markets and ICE's futures and OTC energymarkets is an important and logical strategic combination for our customers and shareholders, and clearly an exciting opportunity for ICE to grow and further diversify our revenues," said ICE Chairman and CEO Jeffrey C. Sprecher.

IntercontinentalExchange is based in Atlanta, Georgia.

 Website: www.climateexchangeplc.com

More on green investing.



Disclosure: no positions
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.